[October 19, 2006]

MP3 Search Vendor Singed New Music Deal

(Comtex Business Via Thomson Dialog NewsEdge) BEIJING, Oct 19, 2006 (SinoCast China IT Watch via COMTEX) --Baidu.com, the leading Internet search engine vendor in China, this week clinched a content and advertising alliance with MTV Networks to make its users to get easy access to 15,000 hours of MTV and Nickelodeon original video content and music videos.

Bill Roedy, President of MTV Networks International, commented, "This breakthrough relationship with Baidu delivers Chinese audiences a major digital platform for non-stop, 24-hour access to MTV and Nickelodeon programming content for the first time -- from SpongeBob SquarePants, to Pimp My Ride, to MTV China's vast local original programming like MTV Tian Lai Cun and MTV Music Wire. This alliance with China's number one Internet search engine is also a key milestone in our digital media position in China and advances our long-term commitment to expanding our brands and local content in China."

MTVN China will provide four categories of content for MTV Zone on Baidu's portal. Content will vary in length, from 10 minutes to 30 minutes. Internet users will be able to access the high-resolution video content via viewing online, as well as downloading using Baidu's BaiduXsetup software that enables fast downloading.

Some downloaded content will require payment, such as music videos, while most will be downloadable free of charge after viewing advertisements. MTVN, Baidu, and where applicable, the record labels, share the revenues. MTV and Baidu also share ad revenues, and Motorola and Procter & Gamble's Rejoice brand have signed on as the first advertisers of MTV Zone downloads.

In addition, MTVN has signed licensing agreements with four of the top music companies in Mainland China, including EE Media, Modern Sky, Music Nation and Ocean Butterflies to enable MTVN to distribute music videos for emerging and established artists.

Recently, Baidu.com reached agreements with 16 Chinese domestic recording companies, which have authorized Baidu to provide free MP3 downloading of the songs of about 100 singers.

Baidu signed an agreement with TR Music, the largest music company in China, to share resources. Baidu has agreed to pick up the latter's singers and promote them for free, while TR music has agreed to allow Baidu to provide free downloading of its singers' songs.

Baidu has also reached a similar agreement with the other 15 music companies in China, and called their new cooperation a Pan Music Alliance.

Analysts in Chinese media say that Baidu has set up this alliance in the hope of creating a new industry cartel and imposing pressures on international music companies including Warner, EMI, Universal Music Group, and Sony GMG who all previously filed lawsuits against Baidu for music infringement.

Downloading service of MP3 songs generates as much as CNY 20 million each year for newly NASDAQ-listed Baidu.com.

Shortly after Chinese leading Internet portal Netease shut down unlicensed MP3 search service for sake of copyright infringement, Baidu also stopped unlicensed MP3 search business two months ago.

As Baidu, Netease, and more other Internet portals weigh in, unlicensed MP3 downloading service seems to have come to the end of its road in China, some industry experts say.

Baidu announced on August 20 in Beijing that it had clinched a deal with record companies to link its ring downloading service to legal MP3 addresses as of October 1, 2005.

From Guangzhou Daily, Page 1, Wednesday, October 18, 2006
info@SinoCast.com

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