Warner Music, VimpelCom Group sign deal

http://news.yahoo.com/s/ap/20060810/ap_on_hi_te/warner_music_vimpelcom_1

LOS ANGELES - Warner Music International has licensed songs from its 
catalog of music by Madonna, Green Day and other artists to Russian 
mobile carrier VimpelCom Group, the companies said Thursday.

The deal between the global arm of New York-based Warner Music Group and 
Moscow-based VimpelCom appears to be the first of its kind to involve a 
major Western record label and a Russian mobile operator.

VimpelCom, which operates under the Beeline brand, boasts more than 50 
million subscribers. It provides mobile service in Russia and the 
neighboring nations of Kazakhstan, Ukraine, Tajikistan, Uzbekistan and 
Georgia.

Beeline plans to launch a music portal later this month to sell 
ringtones, so-called master tones or snippets of master sound 
recordings, full-track song downloads and other content for customizing 
mobile phones.

Initially, however, only VimpelCom mobile customers in Russia will be 
able to purchase the Warner Music content.

As part of the deal, VimpelCom will have a five-month exclusive to sell 
ringtones, video clips, full-track downloads and other content from Madonna.

At the outset, Beeline will only offer full-track song downloads from 
Madonna, not other Warner artists.

Beeline is the main sponsor of an upcoming concert appearance in Moscow 
by the pop diva.

The Russian mobile music market represents a safer bet for record 
companies, which have seen sales sapped by digital piracy on online 
file-sharing networks or Web sites that make songs available for free or 
well below cost, but without permission.

The nature of mobile networks makes them far harder to hack than 
Internet-based networks.

Russia is second only to China as a source for pirated music, movies and 
software. One Russian-based music Web site — Allofmp3.com — has become a 
popular destination for music fans because it sells full albums for less 
than $1.


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