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

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(Continued) The RFS Newsletter, Oct. 21, 2006. Page 9
Users will be forced to view adverts before programs 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.

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