The Associated Press has moved their Online Video Network back-end from MSN to thePlatform reports PaidContent, quoting Jane Seagrave, SVP for AP’s global product development unit:
When we got to discussing renewal, we jointly and very amicably agreed that it no longer made sense to have Microsoft handle both ad sales and technology. We’ve been pleased with Microsoft’s performance as an ad sales rep, so decided to stick with them.
In other words, MSN Video isn’t nimble enough to adapt to future technology changes. Even MSNBC saw fit to do away with the long-despised MSN video solution, and the AP despite a likely Silverlight pitch and the technical hurdles of switching their thousands of partners to a new provider, still opted to leave Microsoft.
A quick business school aside here, switching costs may be the least appreciated consideration in the online video business today. A number of media companies have gotten in bed with companies like Move Networks that hold very high switching costs; not necessarily a smart move in an industry where the threat of entry of new competitors and new technologies is so high.
This sentiment is summed up well in thePlatform blog:
Finally, AP is taking advantage of thePlatform’s open ability to adapt to our customers’ needs as they grow. As AP wants to take advantage of improving video technologies, or address new business opportunities, thePlatform will be there to support them.
Unlike the majority of mainstream media companies which continue to operate as if they exist in the same network and studio content-driven oligarchy, the AP’s video network and the many new media companies that rely on longer tail content are focusing on becoming more efficient.
By partnering with multiple specific technology partners - and playing the high number of content management, ad-sales, and content delivery competitors off of each other a content company can mix and match for a best-in-class, lower cost solution while ensuring that they leave their future options open.