Microsoft, MTV, and Sony BMG, strike deals

February 6, 2008
Microsoft, MTV, and Sony BMG, strike deals

Microsoft has announced that it has made deals with Sony BMG, and music television giant MTV, for Europe wide distribution of music videos, and programme clips, via its MSM, video service.

These deals will allow clips from TV shows, like South Park and music videos, from all kinds of artists, to be distributed on MSN throughout Europe, including Germany, France and the UK.

The deal with MTV, will allow Microsoft to distribute content in nine countries, at first the emphasis will be on popular MTV shows, such as, Cribs and The Hills, Pimp My Ride, and South Park.

The deal will also encompass distribution from other channels, including Nickelodeon, Paramount Comedy, and Comedy Central; although at this time it is believed that the shows will only be available in, selected countries.

Vice-president of digital media at MTV, Gideon Bierer said. “We are overwhelmingly focused on the under-35s and this audience seized control [of content] on the web and by phone a few years ago and they are not handing it over again,” and “You can’t just assume consumers are going to come to you, we have to also go to them.”

This new deal is building on an existing, $500 million strategy, to provide content and advertising, already struck with by Viacom, the owners of MTV, last year.

In a separate venture, Microsoft will include tens of thousands of music videos, from the Sony BMG catalogue, also included will be interviews with the company’s musical artists.

This in turn is part of Sony BMG’s strategy, to move out of the dying CD market, to become a “music Entertainment Company”.

The Sony deal is slightly more wide ranging than the one with MTV, allowing MSN to run the clips, and videos in 12 countries.

Income from the deals, mainly in the form of advertising revenue, will be split between MTV, Sony BMG and Microsoft.


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