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Google and Viacom Test Online Video Model

Google and Viacom's MTV Networks to Test New Online Video Distribution Model

MTVN Hit Programs Also Available Now for Download-To-Own on Google Video

NEW YORK, and MOUNTAIN VIEW, Calif., Aug. 7 /PRNewswire/ -- Google Inc. (NASDAQ:GOOG) and MTV Networks, a unit of Viacom (NYSE:VIA) (NYSE:VIA.B) , are collaborating to test an innovative video distribution model that will serve consumers, web publishers and advertisers. Google will distribute ad-supported content from MTV Networks to targeted website publishers, allowing publishers to showcase clips from premium programming like Nickelodeon's SpongeBob SquarePants and MTV's Laguna Beach to enhance the content on their websites. As the first-of-its-kind offering from both companies, this new model will provide users with new ways to experience content and create targeted marketing vehicles for advertisers. It will also serve to promote programming that is available via cable, satellite and other distribution platforms carrying MTVN's on-air channels. The companies expect to be testing the model later this month.

This venture marks the first time integrated video programming and advertising will be made available directly to Google's extensive AdSense network, which delivers targeted text and image ads to its network of websites and blogs. This also represents the first time clips from MTV Networks' kids and family, music and entertainment programming will be available to consumers widely across the Web on an ad-supported basis on sites outside MTVN's proprietary sites.

"Collaborating with Google gives us a terrific opportunity to take our content and distribute it even more widely on the web in a seamless and targeted way," said Tom Freston, President and CEO, Viacom. "This deal fits in perfectly with our strategy to deliver the best content to our audiences -- wherever they are. We're very happy to be working with Google, a true innovator in content distribution."

"We're excited to work with MTV Networks on new ways of distributing its content to consumers via the Internet and on Google Video," said Eric Schmidt, Google's CEO. "With the combination of our video technology, and extensive advertiser and publisher network, Google is in a leading position to help content owners, web publishers and advertisers generate interest and increase revenue opportunities."

MTVN programming that initially will be distributed via Google Video and targeted publishers includes clips from:

MTV's "Laguna Beach: The Real OC" - video clips detailing major plotlines from the hit show's third season, which premieres on television August 14.

MTV Video Music Awards - promotional clips from this year's VMAs, airing Aug. 31, memorable highlights from past VMAs, and exclusive clips from the upcoming "Scandalicious Show" previewing this year's VMAs. Nickelodeon's "SpongeBob SquarePants" - Your Brain on SpongeBob, taken from the hugely popular animated series.

"We are content people who make great creative product for all platforms," said Judy McGrath, Chairman and CEO, MTV Networks. "Our brands are great navigation tools for our audiences, and this deal with Google will enable us to follow and lead them to new places."

"We welcome the opportunity to work with great content providers like MTV Networks to explore additional forms of distribution for online video," said David Eun, Google's vice president of content partnerships. "MTV Networks offers a perfect blend of content that is interesting, exciting and relevant to web publishers, advertisers and users alike. We look forward to the results of this relationship, and the impact it will have on these audiences."

MTVN Hit Programs Also Available Now for Download-To-Own on Google Video:

This new distribution model is just one of two significant relationships announced today between Google and MTV Networks. The companies also announced that MTV Networks' hit programs will now be available for download through Google Video, for $1.99 per episode. With more content from across MTVN's entire hit portfolio to be added, the initial offering includes full-length episodes from:

Comedy Central:

"Chappelle's Show": Comedian Dave Chappelle's series that provides a comedic and sometimes defiant look at American culture; "South Park," celebrating its 10th hit season, features the animated misadventures of four eight-year-old boys whose everyday lives regularly intersect with world events.

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