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MTV to Use Warner Music Videos for Mobile Phones

Posted on: Monday, 26 September 2005, 14:01 CDT

NEW YORK -- MTV Networks on Monday said it would license Warner Music Group Corp.'s music video catalog to create programming for mobile phone networks worldwide, featuring videos by such performers as Green Day, Sean Paul and Twista.

MTV plans to create short programs based on shows like "Driven" and "You Oughtta Know" on VH1, and programming designed for high-speed Internet users.

The pricing for the service will be determined by the mobile network. It will be available either by subscription or on a video-on-demand basis.

Warner is the first of the major labels to sign a mobile deal with MTV. "We're moving forward and we hope to announce some other deals with music providers in the future," said MTV Networks Chief Executive Judy McGrath.

The music industry is placing a big bet on the mobile sector as an engine for growth. The industry already derives about half its digital revenue from ringtones. While labels have often allowed online services access to videos for promotional purposes, labels have been turning to their video catalogs as another potential source of revenue.

And in areas outside the United States, where 3G, the latest generation of mobile phones, is already in the mainstream, music is becoming one of the key forms of mobile programming.

Mobile companies consider music a key component of their wireless Internet offerings to offset falling revenue for voice.

MTV, which is owned by Viacom Inc., is looking to get its shows in front of the growing mobile audience, with an initial focus on Europe and Japan.

MTV reaches about 42 percent of wireless users worldwide, through deals with Verizon Wireless and Sprint in the United States; Vodafone, Orange, T-Mobile, Hutchison, and O2 in Europe; and DoCoMo and KDDI in Japan.

Shares of Viacom Inc., which owns MTV, edged up 6 cents to $33.42, while Warner Music rose 3 cents to $18.14, both on the New York Stock Exchange early Monday afternoon.

Source: By Derek Caney/Reuters

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