The ad-supported venture called Wonderwall, which has been in development for a year, seeks to grab viewers from established media outlets such as People and Us magazines and TV programs including "Extra" and "Entertainment Tonight," as well as the more rough-and-tumble gossip websites TMZ and Perez Hilton.

The site, which is intended to have the look and feel of a glossy magazine, also is an attempt to attract users to MSN and get them to stay longer, Bennett said.

Media-buying firm MediaVest signed several advertisers as inaugural sponsors. Bennett declined to name them. The venture employs five people.

MSN and BermanBraun anticipate selling ads to Hollywood movie studios and TV networks, which are shifting more spending to the Internet.

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