Microsoft Lands Guild, Web Gaming Comedy Series

LOS ANGELES (Hollywood Reporter) – Microsoft will be filled to the gills with "The Guild."

The software giant has an exclusive lock on the long-awaited secondseason of the Internet cult hit, which will be the first to bedistributed worldwide simultaneously across Microsoft’s triple platformof Xbox 360’s Live Marketplace, MSN and Zune.

Sprint has signed on to sponsor the 12-episode run, making it thefirst marketer to test Microsoft’s new strategy to draw ad dollars withthe combined reach of a gaming console, Internet portal and portablemedia player.

A scripted comedy chronicling the misadventures of a group of onlinegamers, "Guild" premieres Tuesday on Independent Video, Xbox’s newchannel devoted to original content. "Guild" will lead a collection ofad-supported and fee-based programs, including such other game-orientedfare as "The Jace Hall Show," "Red vs. Blue" and first-season episodesof "Guild."

Although launching with just five or six programs, Xbox hasambitions of expanding Independent Video beyond the gaming theme toembrace a broader audience. The channel is launching with the onlyother original deal it has done to date, the webisode "Horror MeetsComedy" from Safran Media Group, which is not gaming-related.

After reaching 9 million views with a 10-episode season financedfrom viewer contributions via PayPal, "Guild" emerged last year as oneof the more buzzed-about webisodes. Its star, creator andwriter-producer, Felicia Day, has become the face of the original Webproduction world, starring opposite Neil Patrick Harris in one of thefew other success stories in online originals, "Dr. Horrible’sSing-Along Blog," created by Joss Whedon. "Horrible" also is syndicatedon Xbox’s Independent Video.

A key component of the deal allows for Day to retain theintellectual property rights to "Guild" while collecting an unspecifiedupfront license fee. A who’s who of Web brands courted Day for rightsto "Guild," from old-media companies to gamer-centric ad networks,though many insisted on retaining the traditional set of rights.

But Day had been holding out for more than a year in search of adeal that gave her control of the creative and business sides of"Guild." "I was adamant about holding on to the rights of my series,"she said.

As a result, Microsoft will not participate in revenue should"Guild" eventually graduate to TV or film, though the corporation doeshold on to any gaming-related extensions. Which is fine by Scott Nocas,group product manager at Xbox Live.

"We’re a software and hardware company," he said. "If they want to do a movie deal, that’s not our core business."

Four weeks after each episode of "Guild" airs, it moves into asecond window on Watchtheguild.com, home base for the first season’sepisodes. However, Microsoft retains ad revenue in that window as wellas in an unspecified split because episodes will air in an embedded MSNmedia player. Once the entire season is completed by the end ofFebruary, Day can make a new deal for a nonexclusive run beyondMicrosoft.

An added plus for going with Xbox is that "Guild" will bedistributed day-and-date in nine languages in 26 countries where XboxLive operates, reaching 14 million users. "Guild" found unintendedinternational appeal late in its run, according to Day.

Sprint will attach itself to "Guild" in various ways from prerollmessaging to branded entertainment; mobile phone Sprint Instinct isshown being used by one of the series’ characters.

Each "Guild" episode runs 4-7 minutes long. A separate holidayspecial is also covered under the deal, which will allow "Guild" toshoot in high-definition for its Xbox window.

Before the introduction of Independent Video, which was deployedlast week as part of a relaunch of the Xbox Live Marketplace interface,all TV and film content was available on a transactional basis. "Guild"and "Horror," which is sponsored by the Air Force, will be Xbox’s firstfree programs.

"Horror" also will be pushed through all three Microsoftdistribution points but won’t move to MSN and Zune until after its Xboxrun.

Reuters/Hollywood Reporter