“Microsoft and the Walt Disney Co. have struck an alliance that will see the two companies working closely together to develop digital media content and delivery systems, the companies said Monday,” John Borland reports for CNET News.com. “While containing little in the way of specifics, the deal does solidify one of the software giant’s key Hollywood relationships, which it views as critical to the future of its audio and video software platform. A Microsoft executive said the two companies would be working increasingly close together on topics ranging from high-definition film to digital rights management.”
“‘This is really designed so that we will cooperate on digital media initiatives and accelerate the flow of digital content to consumers,’ said Dave Fester, general manager of Microsoft’s Digital Media division. ‘It builds a great bridge between the technology companies and Hollywood,'” Borland reports. “Under the announced terms of the alliance, Disney will take a non-exclusive license to use Microsoft’s Windows Media digital rights management software. The companies did not say exactly where Disney might use the technology, or how soon any such use might develop.”
“The companies said they would also work together to develop and deliver secure content, and help develop technology that lets different devices throughout the home access secure digital entertainment files,” Borland reports. “News of the alliance comes just a few days after one of Microsoft’s biggest rivals in the technology world, Apple Computer and Pixar Chief Executive Officer Steve Jobs, openly broke with Disney after months of contract negations. Jobs said that Pixar would seek a new distribution partner for its animated films, declaring on a conference call with investors that ‘Not even Disney’s marketing and brand could turn Disney’s last two animated films into successes. Both bombed at the box office.'”
Full article here.
MacDailyNews Take: Does Disney really want to shackle itself to Microsoft or does Eisner want to somehow get back at Steve Jobs for taking Pixar off Disney’s plate?
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