While she was unable to provide details, citing commercial confidence, ecorp spokesperson and media relations manager Sara Clafton underlined the severity of the contractual arrangements.
"Even if the non-termination period had not been extended the disincentives to terminate the contract are such that it would not be in either party's interest to do so," Clafton said.
Launched in 1997, NineMSN represents a 50:50 joint venture between PBL's Internet arm ecorp, and Microsoft Australia. In February this year both companies announced their commitment to the delivery of "the next generation of MSN services to Australia", and confirmed that the initial non-termination period would be extended for a further five years.
ZDNet Australia sources close to the arrangement have confirmed that an uneasiness with regards to the relationship exists, despite the success of NineMSN.
"While there can be no doubt that the relationship has produced excellent results and provided NineMSN with an unassailable lead in the marketplace, it is no secret that it is not an optimal relationship from the point of view of Microsoft," one source explained. "The problem is mostly cultural; Microsoft likes to be in charge, and so do the Packers."
A spokesperson for NineMSN denied any suggestion of a rift existing within the joint venture, saying both parties were "extremely happy" with the arrangement and NineMSN's continuing leadership position in the marketplace.
"The decision to extend the relationship was made in February this year, and any suggestion of a split in completely without basis," the spokesperson said. "Both companies participating in the joint venture are delighted with our performance."
Microsoft Australia was unable to comment by press time.
