Music giants invest in Chinese venture

24 Jan 2007
00:00

(Associated Press via NewsEdge) Sony BMG Music Entertainment and Warner Music Group have partnered with a joint venture operating in China that develops technology for distributing music downloads and other content to mobile phones, the record companies said.

The music companies declined to disclose how much each had invested in Access China Media Solutions, a joint venture between Tokyo-based Access and Seattle-based digital media firm Melodeo.

'It's a strategic investment,' said Michael Nash, senior vice president of digital strategy and business development for Warner Music Group.

Access China Media Solutions was formed early last year as a vehicle for Melodeo to distribute its technology to wireless carriers and handset makers in China and other markets in Asia.

The company makes software through which mobile phone users can dial up digital content such as ringtones, listen to streams of audio like podcasts, or download full-length songs.

'Those are the platforms we're hoping to launch with some of the operator partners,' said Thomas Hesse, president of global digital business for Sony BMG. 'The fact that you've got the music companies supporting this, we believe, is going to strengthen the chance of those platforms being successful.'

The music rivals' investment also gives them some say in how the technology works and, perhaps most importantly, helps protect their recording artists' music from unauthorized copying.

© 2007 The Associated Press

© 2007 Dialog, a Thomson business. All rights reserved

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