In-your-face music - MuchMusic Network and MTV Networks Inc. marketing strategies - Brief Article

Brandweek, June 11, 2001 by Michael Burgi

MTV2 AND MUCHMUSIC ARE BATTLING FOR THE EYEBALLS, EARS AND WALLETS OF WEB-SAVVY VIEWERS

There are simply no programming monopolies left in the cable business. One of the more prominent used to be MTV. Well, sort of. MTV had some competition, most notably from The Box--until MTV Networks gobbled up The Box and, once again, enjoyed a clear playing field.

1st&foremost

The Box is now part of MTV2, the spinoff channel that is all music videos all the time. And MTV2 now has an emerging competitor: MuchMusic USA, the Canadian import that has operated in the U.S. since July 1994.

Until recently, no one, including MuchMusic parent Cablevision Systems, had paid the channel much heed. Last year, however, Cablevision bought out its Canadian partner, C.H.U.M., and this year it's ramping up MuchMusic's original programming to replace the Canadian-focused product that it had been running around the clock.

Both all-music networks have positioned themselves as cable-operator- friendly services, albeit with a twist--the channels have been funneling subscribers to their local operators so they can sign up for high-speed cable-modem services. The tactic has been successful because kids (let's call them the 12-24 demographic) tend to listen to, research and download music on the Internet, and because both MuchMusic and MTV2 serve up wall-to-wall music videos with heavy online complements.

"On TV we send you to the Web, and on our Web site we try to push the high-speed Internet service of your local cable operator," explains Nora Ryan, MuchMusic's general manager.

MuchMusic is banking on the Web-savviness of its viewers. Its new lineup, which premieres June 25, incorporates an Internet angle. Take Tastemaker, for example, which will run weeknights at 7 p.m. Viewers are encouraged to go online and upload video of themselves discussing their music and video preferences--in effect becoming VJs.

Another new show, Oven Fresh, employs a thumbs-up, thumbs-down online voting system that lets viewers pick the videos they most want to see.

Then there's Videolator, a Web-site feature that helps people create their own videos to new songs. Some footage from the videos of newer bands can be spliced in. These self-styled clips get voted on, and the winners run on-air. "The record companies see this as a way to establish new acts but also to get people interested," says Norman Schoenfeld, MuchMusic's vp of programming.

MuchMusic, part of Cablevision's Rainbow Media Holdings unit, reaches about 14 million households in the U.S. That's quite a bit less than MTV2's 30 million subs. But like its smaller rival, MTV2 believes its future lies in offering a multimedia experience involving music and the Web.

The MTV2 show that most closely resembles MuchMusic's efforts is Control Freak, which lets viewers vote via the Web on which of three videos will play next (the show runs Monday through Saturday at 8).

"It's a connective experience: 50 percent of our audience has a PC in the same room as their TV, and 25 percent are using both at the same time," says David Cohn, MTV2's general manager.

MTV2, like MuchMusic, contends that this "connectivity" is good for cable operators, which the channel needs to boost its subscriber count. "We bring not only the brand strength but also the young adults that are most likely to be early adopters," says Cohn.

Jerry McKenna, vp of strategic marketing at CableOne, a 770,000-sub operator based in Phoenix, says both services have approached him. But since CableOne hasn't started rolling out digital offerings, he hasn't signed any deals.

"Our primary reason for adding them would be customer interest," he says. "But the modem reference [on both channels' Web sites] is a factor."

It's clear that these young people are watching. The question is whether they'll be logging on, too.

Michael Burgi is managing editor of Mediaweek. He previously covered the cable industry for five years.

                  TALE OF THE TAPE: MUCHMUSIC VS. MTV2
                               MUCHMUSIC
Launch date                    July 1994
Subscribers                    14 million
Parent company                 Rainbow Media Holdings
                               (Cablevision)
Artists currently in rotation  Travis, Creeper Lagoon,
                               Sunshine Anderson
                               MTV2
Launch date                    August 1998
Subscribers                    30 million
Parent company                 MTV Networks
                               (Viacom)
Artists currently in rotation  Radiohead, Jurassic 5,
                               Pete Yorn