NBC Internet, San Francisco, formed an alliance with Telocity, Cupertino, Calif., a broadband services company, to offer co-branded, high-speed Internet service to be launched in the first half of 2000. Under the deal, NBCi, NBC, GE Equity and ValueVision will invest $70.5 million in cash, TV promotion and online marketing in exchange for a 19.5% stake in Telocity. The co-branded service will feature entertainment, shopping, games, search and other services delivered with rich media applications. The service will be promoted via a national campaign on the NBC TV network, NBC-owned TV stations and other media. NBCi and Telocity will share subscription, sponsorship, advertising and e-commerce revenue generated by the service. The news coincides with an announcement from Microsoft Corp. that it will invest $30 million in Intervu, a company that enables Web sites to deliver live and on-demand audio and video content. Microsoft also is partnering with Intervu in an effort to expand its broadband streaming media network based on the Windows Media platform.
Copyright December 1999, Crain Communications Inc.