06:59 MSFT Microsoft's new iPod killer facing ad cash clash - NY Post (24.06 )
NY Post reports as the co considers how to wage its upcoming war against Apple (AAPL) and its all-powerful iPod, the tech giant may run into unlikely enemies: the broadcast and cable networks it needs to supply music and videos. Just last week, as licensing deals were close to being signed, the co called up some content providers and said the video portion of its Zune device - the co's so-called iPod killer - was being delayed, sources said.
At the same time, the co indicated to entertainment industry execs that it may push to give away downloads but rake advertising cash from its planned site instead of the pay-per-episode model iTunes uses, according to an exec close to the negotiations. This would land television bigwigs in another pitched battle - this time to win advertising dollars from the co and other tech companies that are putting the networks' shows on a dizzying array of new gadgets. One high-level entertainment exec said the television industry has "an interest in building a competitor to the iPod." However, this person added, "it gets a little dicier when trying to compete for ad dollars."
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