Disney Ties Up With Microsoft


The Mouse doesn’t want to go the music industry’s way…which is why it has tied up with Microsoft, according to WSJ. It is a wide-ranging multiyear deal with Microsoft to use the software giant’s digital media technology across all of its properties…It is similar to a Time Warner deal last year, when it said it would collaborate with Microsoft on DRM technologies…
(On Jan. 29, Pixar announced a halt in negotiations to extend the Disney-Pixar co-production relationship..read more on the messy breakup here)
Some details:
— Disney will license Microsoft’s Windows Media and its underlying DRM technology to protects its content…
— The two companies also have agreed to collaborate on a broad set of issues related to electronic distribution of entertainment. The areas include developing secure content for use on future high-definition DVDs and Microsoft’s Portable Media Center
— Improving the quality of online and mobile content using MSFT software…
— It is a nonexclusive deal, which allows Disney to work with Microsoft competitors such as RealNetworks…

WSJ reporters: “The recent decision by HP to use Apple’s approach for selling music online was widely considered a blow to Microsoft’s efforts in the field. Backing by a major movie studio such as Disney, however, shows that Microsoft’s technology still has momentum.”

FT.com: Products such as Disney animation, live action movies and sports or television programmes from the ESPN or Disney Channel networks are likely to be covered by the deal. The move follows more than six months of talks with Microsoft.

AP: Disney already licenses its movies for Internet rentals over the third-party Movielink service, which uses technology from Microsoft and RealNetworks, to protect movies and process payments. Disney uses a proprietary technology to protect movies sent to consumers in their homes over its MovieBeam service.

LA Times: Microsoft doesn’t charge companies for using its media formats or digital rights management software. Instead, it makes its money selling software for the powerful computers that deliver digital movies and music.

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