Micrsoft (MSFT) announced it has partnered with Reliance Communications, the second-largest mobile phone operator in India, to provide Internet television for the country, as well as globally.
The two companies has signed a $500 million deal, which will include exclusive rights for Reliance to use Microsoft's software platform for TV on the Web.
Included in the $500 million are license fees paid to Microsoft, and also investments that will be made by Reliance in its network over the next several years.
Anil Ambani, chairman of the company which is based in Mumbai, said, "As consumers are growing more sophisticated, they are demanding more compelling and personalized entertainment to suit their individual needs and preferences."
He was referring to the company going beyond its mobile services to expand its global reach across the Internet. According to Gartner Inc, the Internet TV market is expected to increase to about 50 million users by 2010.
In a move taking a direct swing at cable providers, Microsoft launched a new version of its Web TV product for companies that provide Internet TV programming.
The Indian film industry is the most prolific in the world, producing around 1,000 movies yearly. As they learn to make them for a more global audience, this deal could really pay off for them.
Even in its existing form and will reach a lot of Indian people scattered abroad in the millions, along with its own domestic audience.
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