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Warner Music, MTV sign music-video deal

MTV Networks 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 acts as Green Day, Sean Paul and Twista.
/ Source: Reuters

MTV Networks 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 acts 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 and will be available either by subscription or on a fee per download or stream.

The music industry is putting 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.

Viacom Inc., which owns MTV, saw its shares rise on the New York Stock Exchange Monday, while Warner Music shares also climbed.