MSN TV and CinemaNow Will Stream Movies From the Web to Television

MOUNTAIN VIEW, Calif., Jan. 6, 2005 — The MSN
TV division ( ) of Microsoft Corp., a leader in the delivery of interactive services for television, and CinemaNow Inc. ( ), a leader in broadband video-on-demand (VOD) distribution and technology, plan to offer broadband customers of MSN TV the ability to stream CinemaNow content directly from the Internet to an ordinary TV set by using the MSN TV 2 Internet & Media Player with service from Microsoft.1

MSN TV intends to collaborate with CinemaNow to optimize its Internet-delivered digital movie and television content for TV viewing. The new functionality is expected to be made available to MSN TV 2 subscribers in spring 2005 as part of a free automatic upgrade. The upgrade will include support for Microsoft® Windows Media®
10 Digital Rights Management (DRM) technology, which will help ensure that customers can play Windows Media-protected content.

“We know people prefer to watch movies and videos in the comfort of their living rooms rather than being tied to their computer screens,” said Sam Klepper, general manager of MSN TV at Microsoft. “Together, MSN TV and CinemaNow make it easy and convenient for consumers to watch Internet-based Windows Media-compatible movies and video on a TV by using the MSN TV 2 Internet & Media Player.”

The MSN TV 2 Internet & Media Player enables broadband home-networked consumers subscribed to the MSN TV service to enjoy their digital video, music and photo files on the television through a home network, and also provides e-mail and Internet access via a television. The CinemaNow plan taps the MSN TV 2 Internet & Media Player’s video streaming capabilities to deliver popular Windows Media-compatible movies and television programming from the Internet to consumers’ televisions.

“By offering our subscribers exciting new opportunities to enjoy the vast entertainment resources of the Internet where they’re comfortable and when they choose, we are continuing to enhance and strengthen the value of the MSN TV subscription service,” Klepper said.

CinemaNow is a leader in the authorized downloading and streaming of feature films via the Internet with content partners including 20th Century Fox, Disney, Lions Gate Films, MGM, Miramax, Sony and Warner Bros.

“We’re delighted to make our library of more than 2,000 movies available to MSN TV subscribers,” said Curt Marvis, chief executive officer of CinemaNow. “With so few digital media receivers capable of replaying Windows Media DRM-protected video content, working with MSN TV is a natural and logical fit and, more importantly, a great benefit to both of our user groups.

About CinemaNow

CinemaNow Inc. ( ) is the global leader in Internet-based video-on-demand and subscription video-on-demand (SVOD) distribution and technology. Through its growing list of content partners including 20th Century Fox, Disney, Lions Gate Films, MGM, Miramax, Sony and Warner Bros., the CinemaNow Web site has become the premier destination for the authorized downloading and streaming of feature films on the Internet. CinemaNow has also developed PatchBay®
, a proprietary content-on-demand distribution and management system that runs the CinemaNow Web site, and is available as a licensable technology solution.

About MSN TV

MSN TV is part of Microsoft’s MSN division. The group, which has pioneered the delivery of interactive services to the television, develops and distributes MSN entertainment, information and communication services to the living room through TV-connected devices.

About MSN

MSN attracts more than 360 million unique users worldwide per month. With localized versions available globally in 40 markets and 20 languages, MSN is a world leader in delivering Web services to consumers and online advertising opportunities to businesses worldwide. The most useful and innovative online service today, MSN brings consumers everything they need from the Web to make the most of their time online. MSN is located on the Web at . MSN worldwide sites are located at .

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at .

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