Warner Music to put ad-supported music video library online

Wants to offset the fall in CD sales by cashing in on the popularity of online video to create new revenue.

Warner Music International and Premium TV, a digital services provider, today announced an agreement to develop a series of ad-supported online TV sites that will let users watch music videos for free.

WMI will distribute and monetize music-based content via specially created direct-to-consumer online platforms, or ‘digital hubs’.

The phased roll out of these destination websites will provide consumers with rich, interactive, free-to-access music experiences. Organized by artist, genre or label, individual platforms will feature Warner Music’s catalogue of video content, offer exclusive previously unseen footage and eventually be presented in a variety of different languages. Key features will include video programming that can be personalized upon individual preferences, a ‘send to a friend’ function and a Video On Demand service that can be streamed as well as downloaded. Revenue will be driven by in-stream advertising, pay per download and syndication to third party applications in the digital and IPTV arena. The agreement also includes plans to develop subscription-based, WAP and mobile versions of the platforms.

The hope is to create new revenue streams for both companies and open up additional marketing channels for WMI, with each ‘digital hub’ turning traditional marketing expenditure into a revenue generator. These platforms will provide opportunities for advertisers to reach diverse target audiences and allow WMI to offset revenue lost from decreasing CD sales. Furthermore, Warner Music will try to leverage their existing digital content and offline promotional initiatives to maximize consumer traffic to the sites. The hubs will provide the opportunity for an in-depth, ongoing and direct dialogue with communities of online music fans.

Premium TV will offer the partnership the depth of their technological, entrepreneurial and marketing knowledge in digital rights space. The company will build each site and provide their proprietary Searchable Video Archive (SVA) technology. The agreement will also see Premium TV oversee the commercial exploitation of the sites.

Patrick Vien, Chairman and CEO, Warner Music International, says, “This major new proposition in online TV represents a key step in our continued transformation. These unique digital hubs will further enable us to monetize our content across the myriad of ever-developing ways that people enjoy music. The depth and breadth of experiences that this partnership should ultimately provide means we will connect not only with traditional music fans, but with a broader audience who consume music on a more casual, lifestyle orientated basis. For Warner Music, Premium TV, third party advertisers and of course music fans, this is an extremely exciting digital development.”

Oliver Slipper, Chief Executive Officer, Premium TV, says “This is a major step forward for Premium TV. To be working with a major music label and its complete music video archive is a great opportunity. It will also offer an enhanced commercial model, building on our existing expertise monetising clients’ rights, through the incorporation of targeted in-stream video advertising.”

It has been announced when these new “digital hubs” are to launch but, considering that MTV doesn’t really show music video anymore there may perhaps be a market for such content.

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