MSNBC announces Beta of Ad-supported Mobile Service

msnbc logo MSNBC has released the beta version of an ad-supported mobile for delivering news stories, pictures and video to mobile phones.

Microsoft Corp., which owns a section of MSNBC along with the NBC network, has signed up as the exclusive advertising sponsor for the launch of the new service, which is powered by technology from Action Engine Corp. The stated purpose was to combine the resources and reputation of NBC News with the technology of Microsoft to bring an integrated news service on the Microsoft Network and cable television.

While launching the service at the CTIA Wireless show in Las Vegas, Nev., MSNBC said the service was not merely an expansion of its market to the mobile arena, but also an immense learning experience.

In a statement, Catherine Captain, vice president of marketing for said, “The consumer research we collect from this beta launch will give us valuable insight on how to effectively migrate advertising-supported content from computer to mobile device.”

While using the service, consumers will receive video and banner advertisements. At the same time, MSNBC will ask for consumer feedback, and judge interest from advertisers and wireless operators to determine a business model, the company said.

Mobile video has yet to catch on with wireless subscribers, due in part to the high prices charged by carriers. Till February, 28 percent of all mobile phones were capable of playing digital video, but only 1 percent of subscribers had actually signed up for the service, according to The NPD Group.

Many consumers balk at the current average rate of $10.70 a month, preferring a price range of between $6.50 and $8.50, the researcher said. However, in a bit of good news for MSNBC, 77 percent of current video subscribers and 69 percent of those who intend to subscribe are interested in watching live TV.

The MSNBC service offers top headlines in news, business, entertainment, technology, sports and health. Additionally, slideshows of “the week in pictures” will be available along with video from “The Today Show” and other NBC News programs. Subscribers will be able to save news articles in a folder for later reading.

People can download the service over the web through a special MSNBC site. The service requires consumers to have a data plan with a wireless carrier and an internet-enabled phone. At first, the offerings will run only on Microsoft’s Windows Mobile platform, but MSNBC intends to support Java- and BREW-powered devices in the future.