October 19, 2006

With more than 40 percent of China's search market, leading search property Baidu will distribute MTV programs and certain music videos on the Chinese Internet, under a licensing agreement announced Oct. 18 with MTV Networks.

Overall, Baidu's deal with MTV includes programming from other MTV channels, including SpongeBob SquarePants and Dora the Explorer.

The two companies aim to generate cash from advertising and by charging for some downloads. Users will be forced to view adverts before programmes and charged to download music videos, MTV Networks announced in a statement.

MTV and Baidu will both take a share of the profits, as well as splitting the take with record companies when music videos are downloaded. Profit sharing ratios and other financial terms of the deal were not disclosed.

"Content owners and artists will be compensated through this revenue sharing agreement, which also offers exciting new opportunities for advertisers to reach the online youth demographic in China," said Baidu co-founder and chairman Robin Li.

Baidu has previously had an uncomfortable relationship with the music companies. The search firm is facing lawsuits from major music and movie firms because it operates a specialised media search engine which provides easy access to pirated MP3s and other music online.

Despite yesterday's announcement, the only media download service prominently featured on Baidu's home page today remains the contentious Baidu MP3 search engine.

"The new agreement delivers Chinese audiences a major digital platform for non-stop, 24-hour access to MTV and Nickelodeon programming content for the first time, from SpongeBob SquarePants, to Pimp My Ride and MTV China's vast local original programming," said Bill Roedy, president of MTV Networks International.

The service features streaming and downloadable video, with programmes up to 30 minutes in length. The companies did not state whether the downloadable videos would incorporate any form of digital rights management or anti-copying technology.

"Nickelodeon recently launched consumer products in China for the multi-billion dollar SpongeBob SquarePants and Dora the Explorer franchises," MTV networks announced.

MTV Networks, a unit of Viacom, controls 133 TV and video channels worldwide, including Nickelodeon and Comedy Central, as well as music video channels.

MTV claims that its main channel in China and Hong Kong is seen in 13.1 million households, and some original programming is received by 175 million households.

Source: Vnunet