Microsoft watches 'Family Guy,' pulls out of special

Fox has lost Microsoft as the exclusive sponsor of its upcoming "Family Guy" variety special after the software company's executives watched the show's taping. 

Earlier this month, the companies announced they were teaming for an unprecedented collaboration on "Family Guy Presents: Seth & Alex's Almost Live Comedy Show," a special set to air Nov. 8 during Fox's popular Sunday animated block. Instead of traditional commercials, the special was to feature creative promotion of Microsoft's latest operating system Windows 7 woven into the show's content.

Then executives watched the taping. Here's a statement from Microsoft:

"We initially chose to participate in the Seth and Alex variety show based on the audience composition and creative humor of 'Family Guy,' but after reviewing an early version of the variety show it became clear that the content was not a fit with the Windows brand. We continue to have a good partnership with Fox, Seth MacFarlane and Alex Borstein and are working with them in other areas. We continue to believe in the value of brand integrations and partnerships between brands, media companies and talent."

The special reportedly contained jokes deaf people, the Holocaust, feminine hygiene and incest -- it was just like a "Family Guy" episode, in other words.

A 30-second ad during "Family Guy" costs about $214,750. Buying an entire half hour special during sweeps doubtless put the Microsoft deal into the millions.

Fox plans to move forward with another integrated sponsor, though its unclear how this will work since the network has already taped the special before a live audience, complete with Windows 7-related humor.

Questions:

-- How did Microsoft not know what "Family Guy" was like before committing to the special?

-- How did Fox not know what Microsoft was like before attempting this special -- which is to say, utterly humorless about the majesty of its brand?

-- Does Microsoft realize this means it's open season on Microsoft jokes on "Family Guy," only these jokes might actually be funny?

Whichever advertiser steps up will presumably not have to cough up as much money as Microsoft, though. (In true "Family Guy" style, lets jump to imagining the network's Craigslist ad: "For Sale: One slightly used "Family Guy" variety special. Needs some re-editing. Mint condition, never been aired. Motivated seller. All ad inventory must go!")

Here's the unholy preview commercial MacFarlane and Co. created for the special: