MTV Rolls Out a Mobile-Music Venture

Joins with Real Networks, Verizon for iTunes Challenger

By Andrew Hampp

Published: August 21, 2007

NEW YORK (AdAge.com) -- Two years after launching iTunes competitor Urge, with Microsoft, MTV Networks has a new partner in Real Networks. The two unveiled today a joint venture called Rhapsody America, which also includes mobile partner Verizon Wireless. The deal brings what MTV hopes will prove to be a unique element to the mobile-music space, and will help differentiate itself from the likes of Apple's iPhone and Zune, the portable music device Microsoft launched just months after its Urge partnership.

No PC connection needed
Like iTunes, Rhapsody America will allow users to download MP3 files to their PC for 99 cents. But unlike the iPhone or Zune, which require connection to a PC, users will be able to purchase music for their Verizon V Cast-enabled phones on-the-go -- meaning they can hear the latest Justin Timberlake song on their phone directly without having to plug anything into their computer first. Users will also have the option of "dual delivery," or the ability to download to their PCs as well as to their phones, via Verizon's V Cast music, a partnership previously existed with the MTV Networks' Urge program.

MTV serves as the content provider for the joint venture through its preexisting relationships with record labels for streaming music videos on V Cast. Van Toffler, president of MTV Networks Music & Logo Group, said in a statement, "It's like we've put the best lead singer, drummer and guitarist all on the same giant stage, allowing music fans to experience the purest music play in any way they want."

The pay model for Rhapsody America will mirror the ones already in place for Urge and Rhapsody, said an MTV spokeswoman. Individual MP3s will cost 99 cents, while unlimited monthly subscriptions will remain at $9.95 for PC-only, or $14.95 for "PC to go," which includes mobile. Music videos will continue to be available for free streaming.

Promotional spots announcing Rhapsody America will begin airing on MTV next week, with additional spots and integrations airing throughout the Video Music Awards on Sept. 9.

Link to AdAge Article

MTVN's Logo To Buy Gay Social Network

by Gavin O'Malley, Thursday, Aug 16, 2007 6:00 AM ET

LOGO, MTV NETWORKS' CABLE CHANNEL for gays and lesbians, has agreed to buy DowneLink.com, a social network for multicultural lesbian, gay, bisexual and transgender audiences. Terms of the deal were not disclosed. The acquisition is part of MTVN's niche programming strategy to better serve up targeted audiences to advertisers, and firm up Logo's "role as the leading online and on-air source of entertainment for the LGBT community as well as the best way for advertisers to reach them," said Lisa Sherman, senior vice president and general manager of the network. With a community of some 400,000 members, DowneLink is a solid addition to Logo's growing assembly of affiliated Web sites for the gay and lesbian community. Existing sites include Happiestgaycouple.com, the recently launched visiblevote08.com, NewNowNext.com along with AfterEllen.com, AfterElton.com and 365gay.com, each of which were acquired last summer. About 72% of DowneLink's members are African-American, Asian or Latino, while the gender breakdown is balanced between men and women, according to a company spokesperson. Encouraged by advertisers attempting to target ever more niche audiences, the world of media is presently undergoing hyper-segmentation and specialization. Logo is one of a growing number of channels through which advertisers can reach gays and lesbians directly. Earlier this week, a new vertical venture known as the Gay Ad Network launched on over 200 Web sites representing more than two dozen online publishers, including local gay newspapers, national gay magazines, independent content sites and social networking services. The network was founded by PlanetOut/Gay.com guru and gay online ad sales pioneer Mark Elderkin, who left the gay online publisher in July 2006--and is now competing against his former company on the ad sales side. Top-tier advertisers running across the network include AllState, Ford, eBay, and Atlantis Events. Catering to gay and lesbian viewers on a national scale, MTVN's launch of Logo in 2005 was seen as a gamble. Some cable operators were reluctant to carry the channel, while only three advertisers signed up as charter sponsors, including travel Web site Orbitz, Subaru, and the Paramount film studio. Since then, the brand has thrived--with distribution deals with every major cable operator, and over 80 advertisers, including American Express, Intel, Kodak, Lexus, Pepsi and Sears. Link to MediaPost Article

O2 Germany Taps Muze on Mobile Music Subscription Play

O2 Germany is now pushing into the subscription-based mobile music realm, and tapping Muze as one of its key partners. According to information disclosed Tuesday, O2 Germany will also wrap MTV into the play, and use the alliance to craft splashy download specials. Muze will focus on the search, discovery, and consumption of mobile music assets through its Open Media Exchange. "We have partnered with world class organizations in order to bring our customers exciting, yet affordable digital media content," commented Lars Dueysen, head of music data services and portals for O2 Music.

Charges will be automatically billed to existing accounts, a mechanism that helped to fuel a booming ringtone industry. The service, which blends downloads into a subscription platform, allows consumers to simultanouesly download songs to their devices and PCs. That dual-download structure is becoming standard, and consumers can also download PC-based tracks and sideload them onto their devices. The service also supports progressive playback, which allows users to start listening to a song before the download is completed.

Link to Digital Music News Article

Alltel Wireless Grabs MTV Networks Video Content

US-based wireless network Alltel has now finalized a content relationship with MTV Networks, according to deal terms disclosed Thursday. The Viacom-owned MTV is delivering a number of goodies to Alltel, including mobile-based videos, WAP sites, and games revolving around its MTV, Comedy Central, Nickelodeon, Spike TV, and VH1 properties. Compatible Alltel handhelds will enjoy mobile-friendly clips from Comedy Central's "South Park," "The Hills," and Nickelodeon's "SpongeBob SquarePants," among others.

The deal provides lots of content for Alltel, and a nice content jumpstart for an emerging format. "As the wireless phone continues to evolve
into a mobile entertainment device, Alltel is committed to providing the
latest and most compelling content available," said Wade McGill, senior vice president of wireless product management for Alltel. The MTV Networks content will be blended into an existing, premium data offering from Alltel called Axcess, a service that also includes news, sports, GPS, texting, and music-related content like XM Satellite Radio, ringtones, and ringbacks. Alltel has roughly 12 million subscribers.

Link to Digital Media News Article

MTV Launches Video Remixer Fan Service

MTV has launched a new site that allows people to create their own video mashups, reports Billboard.

The Video Remixer site lets people take clips from current and classic videos, along with photos and other media, and mix them into a new creation. The channel then takes the best ones and gives them airtime.

MTV is slowly making new videos from hot artists available for the mashup offering, in addition to a trove of archived video footage.

Officially sanctioned video mashups are building popularity as a way to increase user engagement online. It also creates a limitless supply of new video that can have ads inserted, providing an influx of newly created revenue potential.

Link to Marketing VOX Article

Taco Bell Gives Customers Starring Roles

Taco Bell is giving people a chance at 30-seconds of fame as part of an online search that uses consumer-generated content with a twist.

The company has teamed up with Gizmoz and MTV to search for three consumers to star as animated characters in an upcoming TV spot.

Customers upload digital photos to TacoBell.com through July 22 to audition for the spot. On the site, visitors customize their photos to bring them to life using the online technology or can choose from the gallery of Gizmoz animated characters. They then record their voice for a 15-second, lip-synched audition explaining why they should be a Taco Bell star.

Users can also send their creation to a friend or post it on a blog, video site or social networking profile or rate other consumer auditions.

“We’re looking for people with creativity, something that will make people stand out,” said Taco Bell spokesman Rob Poetsch.

On Monday, the day the contest began, 10 entries had been submitted.

Taco Bell will judge the auditions based on personality, originality, appeal and expression. The panel will choose three winners, whose likenesses will appear in a commercial for Fourthmeal, the late night meal between dinner and breakfast during the “MTV Video Music Awards” on Sept. 9.

Beyond the TV spot appearance, winners will receive a salary for a day ($3,725 for the lead role and $179.55 for a non-speaking role) and a year’s worth of Taco Bell food.

The TV Me promotion marks the first time Taco Bell is using consumer-generated media as part of its advertising mix. A co-branded spot will air this week on MTV to promote the auditions.

Banner ads and online marketing also support the promotion. Draftfcb will produce the TV spot for Taco Bell.

Link to the Promo Article