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Monday, May 12, 2008 - Page updated at 12:00 AM

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Microsoft software for video chats

Seeking more revenue from Internet ads, Microsoft has introduced software that allows users to exchange messages while watching online videos.

Messenger TV combines the Windows Live instant-messaging program with video software, Microsoft said. Users will be able to watch and share clips from companies such as MTV Networks and Sony BMG.

Microsoft is expanding its Internet business to spur online ad sales and catch up with Google, whose YouTube video site already shows ads on its home page and alongside some clips.

Microsoft said PepsiCo and News Corp.'s 20th Century Fox plan to run ad campaigns on Messenger TV.

The service will start in Europe, where there are 95 million users of Windows Live Messenger. There are a total 240 million Messenger users.

Copyright © 2008 The Seattle Times Company

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