Microsoft expands network of TV-like ads on Xbox Live

[+Audioboxer Subscriber²]

Microsoft revealed on Tuesday that it has expanded its lineup of advertising partners on Xbox Live, and will distribute even more TV-like ad spots across the various media apps on the platform.

Xbox Live media apps such as ESPN, Last.fm, Manga Entertainment, GameSpot, and MUZU.TV will now include 15 to 30 second video ad spots. These partners join companies like UFC, TMZ, and Crackle, which have offered these video ads since December.

Microsoft first introduced these TV-like advertisements with last year's major dashboard update, as part of a larger initiative to grow the Xbox 360 platform from a games console into a full-blown entertainment hub.

According to Microsoft, that plan is working so far, as entertainment app usage has doubled year over year for Xbox Live Gold members in the U.S.

This trend toward multimedia entertainment has also coincided with an increase in ad revenue for Microsoft, as ad spending on Xbox Live has increased by 142 percent since 2010.

Xbox Live currently boasts some 40 million active members worldwide, and Microsoft says that U.S.-based Gold members spend an average of 84 hours a month using the service, making it an ideal platform for entertainment and advertisements alike.

Source: http://gamasutra.com/view/news/169153/Microsoft_expands_network_of_TVlike_ads_on_Xbox_Live.php

MS stop giving Sony ideas.

[Guest xiphi]

Why the hell are they adding more ads to a service that we pay for? Thankfully, I no longer use the apps since I have a PC and the Netflix app went to ****.

[The Teej]

Why the hell are they adding more ads to a service that we pay for? Thankfully, I no longer use the apps since I have a PC and the Netflix app went to ****.

To be fair, why do we have to watch advertisements when we pay for cable? Same thing applies really. I'd rather see the odd advert here and there then having to pay extra per month.

[the better twin]

Who cares about games. The xbox doesnt need those. Its adverts weve been missing. MS werent kidding when they said they were using the XBL price hike to improve the service.

[TheLegendOfMart]

To be fair, why do we have to watch advertisements when we pay for cable? Same thing applies really. I'd rather see the odd advert here and there then having to pay extra per month.

Not the same thing.

You are paying to receive TV channels operated by other companies who serve ads in their channels, through your cable operator.

Xbox Live is operated by Microsoft, Microsoft are the ones serving ads to you even though you pay for "Gold" membership.

[threetonesun]

TBH, I don't think I'll get another Microsoft console once the 360 is done. Paying for Gold and having to deal with adverts plastered all over every menu is a bit much.

[metal_dragen Veteran]

Not the same thing.

You are paying to receive TV channels operated by other companies who serve ads in their channels, through your cable operator.

Xbox Live is operated by Microsoft, Microsoft are the ones serving ads to you even though you pay for "Gold" membership.

Actually it's exactly the same thing in the context of this story. You are paying to receive apps ("channels") operated by other companies (or at the very least, using other companies' content) who are choosing to serve ads. The ad network that provides those ads just so happens to also be operated by the "cable operator" (Microsoft).

[BajiRav]

Guess Last.fm will now show different ads, I got tired of looking at the same Forza 4 ad on it. :p (not a regular user though)

[Miuku.]

To be fair, why do we have to watch advertisements when we pay for cable? Same thing applies really. I'd rather see the odd advert here and there then having to pay extra per month.

We don't have ads on paid channels. What are you talking aboot!

[TheLegendOfMart]

Actually it's exactly the same thing in the context of this story. You are paying to receive apps ("channels") operated by other companies (or at the very least, using other companies' content) who are choosing to serve ads. The ad network that provides those ads just so happens to also be operated by the "cable operator" (Microsoft).

The cable provider doesn't serve the ads. You pay a fee for the use of their services to received the third party channels.

Microsoft does serve the ads even though you are paying a fee for the use of their services even though the games are served by third parties.

[metal_dragen Veteran]

The cable provider doesn't serve the ads. You pay a fee for the use of their services to received the third party channels.

Microsoft does serve the ads even though you are paying a fee for the use of their services even though the games are served by third parties.

I mentioned that Microsoft does provide the ads. This is a separate and additional revenue stream for them.

The ad network that provides those ads just so happens to also be operated by the "cable operator" (Microsoft).

Oh, look! Most cable operators also make and sell ads. There are a certain number of time slots available during programs that the cable operators sell to "local" advertisers (e.g. the local Ford or Chevy dealer, that furniture store up the street, etc.). This is a separate and additional revenue stream for them.

Again, this is no different than the existing cable model.

I don't understand why you are talking about games however - this is about the media content and apps, not the games.

[giantpotato]

I think a better comparison is Neowin. How dare they show ads for peope with a Tier 1 subscription. /s

[+Audioboxer Subscriber²]

While I think the comparisons to TV are a bit silly, I can definitely say you guys in the USA bend over a table when it comes to TV adverts. It's absolutely shocking.

Think watching the Lost finale was one of my angriest experiences ever when I was in the states. Not to mention the terrible finale on top of the ads didn't do any favours.

As MS is an American company it doesn't surprise me there is such a large focus on advertising and subscription models.

[jerzdawg]

Well with internet based ad revenues through the roof (record profits) I see this as only the beginning.