Singing In Tune

CDnow, the Internet’s top music store, and MTV Networks, a division of Viacom, Inc., announced a groundbreaking, three-year integrated marketing agreement that includes event sponsorships, online and on-air advertising, online music retailing, and online co-promotions.

For the deal, MTV networks will receive more than $22.5 million in cash and stock, while CDnow will be the exclusive online retailer of the 1998 MTV Video Music Awards, in addition to sponsoring other MTV and VH-1 telecasts.

“We expect to begin a whole series of integrated promotions that will work specifically with MTV and VH-1’s first scheduled 1998 MTV music awards” taking place on Sept. 10, says Marla Zoda, pr manager for CDnow.

Features will include in-store promotions, in-store contests, and an integrated online ad campaign along with MTV and radio support. “It will be a completely integrated approach,” Zoda adds.

Thanks to the new alliance, CDnow will “have the most authoritative content of any music store,” Zoda said, including access to the Rolling Stones network, The College Music Journal , and all of MTV’s music resources.

Starting last month, CDnow (www.cdnow.com) allowed visitors to MTV Online and VH-1 online sites access to 250,000 music items through custom-designed MTV and VH-1 online stores on the CDnow site. In addition, CDnow is featuring MTV and VH-1 reviews and music news, as well as a “Now Playing” ticker highlighting programming on both TV channels in real time.

CDnow and the Viacom-owned channels are also developing integrated co-promotions around certain MTV and VH-1 franchises to enhance the user experience both online and on-air

“This alliance with MTV and VH-1, the preeminent broadcast music brands, affords CDnow the opportunity to take its integrated marketing strategy to the next level,” says Jason Olim, CDnow ceo and president. “These are the only brands that have the true horsepower to move their consumers from their TVs to their computers.”

Matt Farber, senior vp for programming enterprise, MTV and VH-1, says: “In working with CDnow, the leading online music retailer, we recognize we will both be serving our audience better,”

CDnow, Inc., offers more than 250,000 music related items, five times the size of the average music store.