Microsoft Announces Strategic Partnership with Catcha

Partnership to create leading Malaysian media property

Kuala Lumpur, 24 April 2009 – In a move that further strengthens its commitment to the Malaysian Internet market and creates a platform for continued growth, Microsoft Corp. today announced a strategic partnership with leading magazine publisher Catcha Media Group (Catcha). With this agreement, Catcha will leverage Microsoft’s existing base of more than 4.2 million MSN and Windows Live users in Malaysia to provide new content channels and increased contextual advertising opportunities. The partnership will allow the integration of editorial, marketing and sales activities.

Microsoft’s Internet properties are among the most popular in the world, and they lead the market in Malaysia as well. For example, Windows Live Messenger is the leading instant messaging service in Malaysia, with more than 2.7 million users. The new venture will combine Microsoft’s significant position with Catcha’s extensive content assets to address the needs of Malaysia’s Internet users and advertisers. Malaysia has more than 14.9 million internet users as of June 2007, representing 60% of the population, growing at 10% per year[1]. Nielsen Ratings expects online advertising to increase by about 10-12% in the coming year.

The partnership will officially kick off on July 4, 2009, and will see the formation of a new company - Catcha Digital - which will be a leading media company in Malaysia. Its offerings are expected to reach both Microsoft’s Windows Live and MSN users and Catcha’s extensive magazine readership.

The newly formed Catcha Digital will leverage the online sales and content development rights for Catcha’s market-leading portfolio of 20 magazines and Microsoft’s online properties. These include Microsoft’s MSN news and information portal, as well as Windows Live and its online services, which include Hotmail, Windows Live Messenger, Live Spaces and Skydrive, and Catcha’s publications such as JUICE, K-Zone, Stuff, FourFourTwo, Evo, F1 Racing, SuperCars, Fairways, Prestige, Home Pride, Mint, Clive and many more.

“By combining the resources of the world’s largest online player and Malaysia’s largest independent magazine publisher, we will be able to offer users a wider variety of quality content and advertisers a more robust and targeted way to reach out to consumers,” said Mark Inkster, General Manager for Microsoft’s Online Services Group in Southeast Asia. “People are increasingly turning to the Internet for information and entertainment, whether it’s to chat with friends via email or IM, visit review sites or go to branded sites and search portals for product information. They are making informed choices based on the information they have, and we believe that this will spur continued growth in the online advertising industry.”

According to Patrick Grove, Group CEO of Catcha, "This partnership positions Catcha Digital to benefit from the rapid movement of advertising budgets to online media. As online spending grows, users and clients want engaging, exclusive local content. Catcha’s portfolio of 20 magazines offers the perfect content platform from which Catcha Digital can develop online media content. Combining this resource with Microsoft’s online user base will see Catcha Digital become a leading media player in Malaysia. It will reach more Malaysian consumers every month than any other medium, making for an exciting proposition for both companies, and allows advertisers unprecedented ability to convey their message to the target Malaysian consumer.”

This partnership marks the beginning of a deep collaboration between the companies and yet another step forward for Microsoft in Malaysia, which also recently announced an enhanced offering recently for its Windows Live services, comprising Windows Live Messenger, Hotmail, and Windows Live Photo Gallery. It also marks the aggressive return of Catcha to the online portal space.
[1] http://www.internetworldstats.com/asia.htm#my