“MTV will make the hookup with MusicNet (which is a joint venture composed of RealNetworks and a trio of music companies — Warner Music, BMG, and EMI) to create and brand a new online music-download operation. MusicNet already supplies its services to Time Warner’s America Online users and will be assisting the Virgin Group in its attempt to buy some real estate in this growing arena. No specific start date has been announced, and pricing tiers have yet to be determined,” Steven Mallas writes for The Motley Fool.
“MTV will have to compete with Apple (Nasdaq: AAPL) and its army of iPod devices, [but…] even though MTV has its work cut out for itself, my instinct tells me it is going to do well and eventually grab a ton of the mindshare available for this sector. Why? I’ve got one word for you (and, no, it isn’t plastics): brand. The equity inherent in those three letters, coupled with the formidable relevance and resonance they hold with the technophile teens and collegiate dudes across this sphere of ours, makes me think that the cabler will be able to monetize the strong relationship with its hip viewers even further than it already does… This area is sure to grow, and my gut hunch is that either MTV or Wal-Mart will end up being the dominant players somewhere down the path,” Mallas writes.
Full article here.
MacDailyNews Take: The MTV service will not work directly with Apple’s iPod as we understand it – the same problem Wal-Mart, Napster, Sony, etc. face. There are over 3 million iPods in users’ hands already and the number is growing rapidly. Selling leaded gas (Real or WMA or ATRAC3) when most want unleaded (AAC) doesn’t seem like a winning proposition to us.