BSkyB announced joint Net advertising venture with Australian ISP

In a move that could revive the flagging fortunes of Net advertising, British Sky Broadcasting, the Murdoch-owned satellite television venture, has announced plans for a global Internet advertising service in a joint venture with OzEmail, an Australian Internet Service Provider.

The details of the scheme will be made public on 3 December at its launch in New York but the joint venture will capitalise on the new media model presented to advertisers by the Internet. Based on technology developed by OzEmail, the service will deliver Internet advertising targeted at local audiences accessing Web sites, regardless of where those sites are hosted.

Each party will make equal financial contribution to the joint venture. Elizabeth Murdoch, general manager of BSkyB and Malcom Turnbull, chairman of OzEmail, have been appointed co-chairmen.

Both parties have agreed to cooperate on any future Internet opportunities. OzEmail will issue BSkyB two-year options to acquire two million OzEmail shares at $14(US) each, equivalent, on a fully diluted basis, to approximately 15 per cent of the expanded issued share capital of OzEmail.

Turnbull said that, with global Internet advertising revenue expected to exceed $5 billion by the turn of the century, the new medium represented both a sizeable and an exciting opportunity. ?We believe that the strategy which will be employed by our joint venture will harness the power of the Internet medium," he said.

OzEmail is the leading provider - based on number of customers - of comprehensive Internet services in Australia and New Zealand. The company offers both dial-up and leased line services to residential and business customers. It?s American depository shares are traded on the Nasdaq market.