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Xbox to sell Warner Music videos for $1.99

/ Source: The Associated Press

Gamers with a hankering to watch music videos will have more choices after Warner Music Group Corp. announced Thursday it is adding its library of videos to Microsoft Corp.'s Xbox 360 game console.

Videos from Sony BMG, which sell for the equivalent of $1.99, have been offered on the Xbox since last December.

Microsoft's game division is in talks with other major labels, such as Vivendi SA's Universal Music Group and EMI Group PLC, to add their music videos to the service offered to 12 million users of Xbox Live.

"It's been promising enough that we're going to amp up our discussions with other labels to grow the catalog," said Peter Orullian, senior group product manager on Xbox Live.

Faced with declining CD sales, Warner and other labels have aimed to expand revenues from new digital outlets. The music company will receive licensing revenue from each video sale.

The offering of videos ranges from the most recent, like Warner's T.I. and Flo Rida, to those that go back to the 1980s, such as Michael Jackson's "Thriller," reflecting the growing number of 30- and 40-somethings who are Xbox users, Orullian said.