MICROSOFT Corp yesterday entered a strategic partnership with the Shanghai Media Group, China's second-largest broadcaster, in entertainment applications for computers, televisions and mobile phones.

The aim is to form an industry "ecosystem" that integrates content production, information technology and electronic products, the two companies said in a statement.

Microsoft will provide technology for SMG's new media divisions that covers video Website, IPTV, digital TV and mobile TV, and also platforms its own Web portals for SMG contents.

"We are trying to promote the combination of technology and content through this cooperation and provide innovative application and service," said Timothy Chen, chief executive officer of Microsoft China.

According to Chen, they are yet to start working on any specific project. A new product based on the partnership should be launched within 12 months.

The joint venture will focus on the needs of the younger generation and the two companies will combine efforts on research and development.

Li Ruigang, SMG president, said they hope to work out more and better business models in digital media services, and increase Chinese culture's influence through Microsoft's distribution of its contents.