MTV Networks Online, a unit of Viacom, and RioPort, a wholly owned subsidiary of Diamond Multimedia Systems, inked an exclusive, multiyear agreement to deliver digitally downloaded audio content. As part of the agreement, MTV Networks Online will provide content and promotional support. In addition, MTVN Online will receive an equity stake in RioPort and share in revenue from the sales of digitally distributed music. In exchange, RioPort will provide music management software and licensing solutions, aggregate content, and receive online promotion across all of the MTV Networks online properties including MTV.com, VH1.com, Nick.com, SonicNet, and the soon-to-be-launched new music destination, the Buggles Project. The two companies expect to have content available during the fourth quarter of 1999.
Copyright July 1999, Crain Communications Inc.