Mediaweek (and others) are reporting that Microsoft is revamping its MSN Video site and limiting the number of pre-roll video ads it delivers.

Using a new algorithm, MSN’s video ads will be based on the time users spend on the site, not on the number of clips viewed.

Per MediaWeek:

According to Rob Bennett, MSN’s general manager, video, entertainment and sports, the previous ad model often resulted in the less than ideal scenario of users seeing a 30-second spot followed by a 15-second piece of content and then another 30-second spot. “That’s not a good experience for users,” he said.

A better experience, they hope, will mean increased stickiness. I’ve written about this terrible ad to video ratio a while back, and am glad that MSN is doing something about it.

This comes after YouTube announced it was starting to use video ads.

MSN said it is also combining its Soapbox user generated video site with MSN’s more mainstream news, sports and entertainment video.

Technorati Tags: Soapbox, MSN Video, MSN, Microsoft, YouTube, advertising, Internet video

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On Friday, rumors were once again spreading about AT&T’s possible acquisition of EchoStar Communications.  Analysts are buzzing. Investors are raising the price of EchoStar’s stock (almost 7% on Friday).

This comes after EchoStar acquired Sling Media for $380 million. almost two weeks ago. And after announcing it wanted to split into two separate public companies.

Oppenheimer analyst Thomas Eagan said:

Unlike EchoStar’s Dish Network service, AT&T’s internet television service, U-Verse has failed to gain considerable traction with consumers. Eagan said the U-Verse rollout has been grossly over-budget and behind schedule.

“Given the lack of success of AT&T’s U-Verse rollout, it seems to us a matter of when, NOT if, AT&T acquires EchoStar,” said Eagan. According to Eagan, the telecommunications giant would be willing to shell out a hefty premium for the company. He predicts that AT&T will pay shareholders more than $56 a share.

Rumors about AT&T acquiring EchoStar have been around for years. But could it be time? The addition of Sling would be a great win for AT&T and would possibly accelerate Sling’s integration with AT&T’s U-Verse IPTV offering.

[From Rocky Mountain News]

Technorati Tags: EchoStar, Sling Media, Sling, AT&T

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