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MTV Networks yesterday formed an alliance with the world's biggest wireless telecoms operator China Mobile, giving birth to potentially the biggest revenue pool in China for the cable TV arm of the global media giant Viacom.
"Expanding our position in digital and wireless music is a global priority for us," said Bill Roedy, vice-chairman of MTV Networks.
"It is a big benchmark in our history to partner with China Mobile," he added at a press conference in Beijing yesterday.
From May 1, MTV and China Mobile will launch MTV Zone on the network of the top telecoms operator, which has more than 220 million subscribers and acquires 3 million new users every month.
It is the first time MTV content has been distributed on the mobile phone platform.
Roedy said his company will introduce the strategy in other parts of the world.
China Mobile's subscribers will be able to download music ring tones and ringback tones, or watch entertainment news and clips of popular songs, provided by MTV.
Lu Xiangdong, deputy general manager of China Mobile, said its subscriber base for ringback tone services grew from 1 million at the beginning of 2004 to more than 40 million by the end of the year.
He believes the partnership with China Mobile introduces an exciting new medium for TV broadcasters and record companies that is piracy-free, increases revenue and raises customer loyalty.
The two companies will also launch a mobile music chart, with the most popular song receiving a prize at the Mandarin Music Honours awards ceremony organized by MTV and China Central TV.
Peter Lu, a technology and media industry analyst based in Beijing, said the partnership has spawned a fast-growing business opportunity for MTV to extend its previously limited penetration.
Foreign TV companies are only allowed to broadcast in residential areas where foreigners live, such as at hotels of at least three stars and in the Pearl River Delta near Hong Kong.
Li Yifei, managing director of MTV China, said regulatory restrictions do not apply to the content provided to China Mobile.
She believes mobile phone music services will become the biggest revenue pool for her company, as broadcasting and programme production businesses are subject to tight regulations. However, MTV is one of the first foreign broadcasters to be granted a licence to develop a production joint venture, with Shanghai Media Group (SMG).
Ye Bing, general manager of the data service department of China Mobile, said the mobile music service will follow the same revenue sharing model, in which service providers get 85 per cent of the downloading fees and China Mobile gets the rest.
Subscribers usually pay between 1 and 3 yuan (12 to 36 US cents) to download a song.
Lu believes the co-operation is more significant for MTV, with the imminent launch of the third generation of mobile communications systems in China. MTV will eventually be able to show its video content, which will generate even more cash for the United States firm.
The company also said a joint venture between MTV's cartoon channel Nickelodeon and SMG - Shanghai HANA Nick TV Production Co Ltd - will start to beam programmes into 4.5 million households in Shanghai on the SMG children's channel from May 1.
(China Daily April 28, 2005)
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