Microsoft will start testing an Internet video-sharing servicecalled Soapbox, the software company's answer to Web sensation YouTube. Soapboxis one facet of Microsoft's strategy to create attractive Internet content tolure away billions of Web advertising dollars from market leaders Google Inc.and Yahoo Inc. Offering everything from funny home videos to clips from oldTV shows, YouTube sprang out of nowhere late last year as an entertainment breakfor millions of broadband Web surfers. In August, the site had 34 million visitors,according to Nielsen//NetRatings.
Soapbox will be offered to a limited number of users during an invitation-onlytest phase, but Microsoft said it will go fully live as a part of MSN Videowithin six months. "We're definitely not blind to the fact that YouTube has a big lead rightnow," said Rob Bennett, general manager of MSN's entertainment and videoservices. "It's really early days in online video. This is still act one."
Microsoft's late arrival into the crowded video-sharing market, following offeringsfrom Google, Yahoo, Time Warner Inc.'s AOL unit and News Corp.'s social networkingsite MySpace. Last month, Sony agreed to pay $ 65 million to buy video-sharingsite Grouper.com. Focused on original programming and clips from broadcast partners,MSN Video was once the most popular Internet video site until fans of user-generatedcontent propelled YouTube, MySpace and Google past Microsoft in recent months.
The runaway success of free-to-view online video sites has raised the questionof whether rights holders such as music, TV and movie companies should be compensated,even if clips are uploaded by users. In a departure from its past strategy ofrestricting MSN Video to its Internet Explorer browser and Windows Media Player,Microsoft will make Soapbox available for various browsers including MozillaFirefox and Apple Computer Inc.'s Safari.
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