Software industry

Microsoft Enters China's Internet Market with MSN China Launch

Strategic Insights

May 29, 2005 — 1 min read

Microsoft's Internet arm, MSN, has partnered with nine Chinese firms to bring significant changes to China's Internet and mobile value-added service market. The company has formally launched MSN China, signing partnerships to deal with news, online entertainment, auctions, English training, community, and games. MSN China has also launched its portal MSN.com.cn and its MSN Messenger tab services, with plans to upgrade its instant messaging service and launch a 250-megabyte Hotmail e-mail service.

Key Takeaways:

MSN China has launched its portal MSN.com.cn and its MSN Messenger tab services, with plans to upgrade its instant messaging service and launch a 250-megabyte Hotmail e-mail service.
The company has signed nine partnerships to deal with news, online entertainment, auctions, English training, community, and games.
MSN China expects to earn most of its revenue from online advertising and some consumer services like mobile value-added services.
The company's messenger service has 7.1 million registered users in China, with Sharon Baylay expecting the number to double over the next year.
MSN China plans to launch its search engine service in the future, although initially, it will work with Yahoo!'s 3721.
The launch of MSN China may impact Hong Kong-listed Tencent, which operates the most popular instant messaging tool in China, QQ.

Statistics:

MSN China's messenger service has 7.1 million registered users in China.
The company expects to double its current user base to 14.2 million within the next year.
MSN China plans to launch a 250-megabyte Hotmail e-mail service.
The company expects to earn most of its revenue from online advertising, with some contribution from consumer services like mobile value-added services.

Sources:

Asia Pulse, May 30
Xinhuanet 30-05 1434

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