Viacom's MTV Networks and Liberty Digital Announce Internet Music Alliance
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Liberty Digital to Acquire 10% Stake in MTV Networks Online Music Ventures;
MTV Networks Online Music Ventures to Acquire SonicNet Sites
Combined Internet Assets Aggressively Position MTV Networks Online
Music Division as Leader in Internet Music Content and Commerce
NEW YORK, July 7 /PRNewswire/ -- MTV Networks, a division of Viacom Inc.
(NYSE: VIA, VIA.B), and TCI Music, Inc. (Nasdaq: TUNE, TUNEP), a subsidiary of
Liberty Media (NYSE: LMG.A, LMG.B), which will be renamed Liberty Digital in
connection with a recently announced transaction, jointly announced today an
Internet music alliance. Under the terms of the agreement, Liberty Digital
will acquire a 10% stake in MTV Networks' online music ventures and MTV
Networks online music ventures will acquire SonicNet, one of the Internet's
leading music Web sites, from Liberty.
Tom Freston, Chairman and CEO, MTV Networks, said, "The acquisition of
SonicNet, coupled with the recent acquisition of Imagine Radio, expand the
reach of MTV Networks Music Online and are key building blocks for our new
Internet initiative scheduled to launch in June. We have the #1 destination
for music content online and are aggressively expanding our leadership
position on the Web. With the promotional power of our music brands and
direct relationships with over 300 million consumers worldwide, we are the
most innovative and comprehensive presence in music content and commerce on
the Internet and in interactive television. As we have done in television, we
intend to take our preeminent domestic online presence to the largely untapped
international marketplace."
SonicNet, which provides breaking and in-depth music news, live concerts
and an online music guide, owns web sites Addicted to Noise (music news and
information), Streamland (on-demand music videos), Trouser Press (rock
magazine), Cinemachine (movie review search engine), and Alternative Buyers'
Guide (record reviews). MTV Networks plans to aggressively invest in the
future growth and capabilities of SonicNet. Founded in 1995, SonicNet is
recognized as one of the most popular and innovative music sites on the Web.
As part of the deal, the companies also announced plans to cooperate on
the creation and launch of an interactive commerce oriented music channel for
advanced digital set top boxes anticipated to be deployed by cable operators
beginning in late 1999.
Additionally, MTV Networks will acquire THE BOX, an interactive, 24-hour
all-music network. The transaction is expected to close in late June.
Freston continued, "This transaction marks the beginning of an important
partnership between our company and Liberty Digital, a well regarded and
visionary Internet investor. We are pleased to have Liberty Digital as a
partner as we move forward. Additionally, it's great to be back in business
with Lee Masters and to expand on the long and close relationship we've had
with him."
Lee Masters, President and CEO, Liberty Digital, said, "Contributing The
Box and SonicNet in to a venture with the MTV Networks' online music business
is a superb way to build significant value for our shareholders. We believe
this enterprise will be the dominant player in the Internet music space. On a
personal level, I love working with Tom Freston and The MTV Networks' team
once again."
SonicNet joins MTV Networks Music Online division, which includes MTV.com
and its areas: Bands A-Z, Music, MTV Shows, MTV News, MTV2 Local, and Live!;
VH1.com and its areas: Inside VH1, VH1 at Work, VH1 Music Shop, VH1 Tours
First, and VH1 Reviews as well as The Buggles Project, a new Internet
initiative providing the ultimate online music experience. The initiative
features pre-programmed and customizable audio channels, streamed video music
channels, along with e-commerce and community features. The new destination
spans all genres of music and features a full range of information and
services, including a seamless, co-branded shopping experience, concert
information and tickets, news and reviews, and a guide to the best music sites
on the Web. MTV Networks previously announced that it will give the
initiative $125 million in promotional support, over the next five years, from
its worldwide group of networks, reaching over 300 million homes around the
globe.
In 1999, SonicNet was awarded the Webby award as Music Site of the Year
and in 1998, SonicNet was awarded the "Best Overall Music Site" title by
Yahoo! Internet Life Magazine. In November 1997 SonicNet launched Streamland.
SonicNet also publishes Addicted to Noise, a music news site on the Web, the
Alternative Buyer's Guide, Trouser Press and Cinemachine.
THE BOX is an interactive, 24-hour all music network. Viewers of THE BOX
either select specific music videos by dialing a 900 telephone number or
ordering through TheBox.com or view programming selected by others. THE BOX
launched in 1985 as Video Jukebox Network.
MTV Networks, a unit of Viacom Inc., owns and operates the cable
television programming services MTV: Music Television, MTV2, Nickelodeon/Nick
at Nite, TV Land and VH1 as well as The Suite from MTV Networks, a package of
10 digital services, all of which are trademarks of MTV Networks. MTV
Networks also has joint ventures, licensing agreements and syndication deals
whereby its programming can be seen worldwide.
TCI Music, Inc. is a diversified music entertainment company delivering
audio and video music services to commercial and residential consumers via
satellite, television, the internet and other methods. TCI Music, Inc. is
comprised of DMX, LLC (DMX) which programs, markets, and distributes the
premium digital audio music service known as Digital Music Express, The Box
Worldwide, Inc. (The Box), which programs and distributes the Interactive
music video television network, The Box Music Network, and Sonic Net.
Following the consummation of this transaction and the previously announced
contribution of assets from Liberty Media, TCI Music (renamed Liberty Digital)
will be a diversified Internet content and interactive television company.
Viacom Inc. is one of the world's largest entertainment companies and is a
leading force in nearly every segment of the international media marketplace.
The operations of Viacom include Blockbuster, MTV Networks, Paramount
Pictures, Paramount Television, Paramount Parks, Showtime Networks, Simon &
Schuster, 19 television stations, and movie screens in 12 countries. Viacom
also owns approximately 80 percent of Spelling Entertainment Group, as well as
half-interests in Comedy Central, UPN and UCI. National Amusements, Inc., a
closely held corporation which operates approximately 1,300 screens in the
U.S., the U.K. and South America, is the parent company of Viacom. More
information about Viacom is available at the Company's Web site located at
viacom.com.
SOURCE Liberty Media Group
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