Warner Music Inks Deal With Premium TV

By Digital Trends Staff May 31, 2007

Joining a growing trend, Warner, the US music giant, has signed a deal that will make its entire video catalogue available online for free. It’s part of Warner’s new strategy to redefine itself as a “music-based content company” following the sharp decline in music sales. The company, which has artists like the Red Hot Chili Peppers and Madonna on its roster, has inked a deal with Premium TV to create a number of video sites, or digital hubs, which would be organized by artist, genre, or label. Premium is best known for its web site work with several English Premier League clubs. Under the deal, users would be able to stream music, which would include some previously unseen footage, and log their favorite music. The video stream will contain ads, and there are plans to boost revenues by selling downloads. Warner also hopes to sign some syndication deals both with other Internet TV services and the growing mobile market, and is investigating a subscription model. According to Warner, it’s the first of the big four music companies to adopt this new business model while making its entire catalogue available online. “This major new proposition in online TV represents a key step in our continued transformation,” Patrick Vien, chairman and chief executive of Warner Music International said. “These unique digital hubs will further enable us to monetise our content across the myriad of ever-developing ways that people enjoy music.” The move comes after Warner Music posted a loss last quarter.

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