SonyBMG Forms New Mobile Direct To Consumer Co. With Dada

With music sales declining SonyBMG is joining other major music companies and deversifying its portfolio via a new 50/50 partnership with Italian mobile content provider Dada. The move also follows the growing trend of content providers like Sony BMG engaging consumers directly with fewer middlemen.

The joint company will focus its first efforts on the US market offering a full range of mobile music products including direct to consumer downloads and ringtones as well as a social networking platform.  While Sony BMG will offer its entire catalog directly via the newly created Dada Entertainment, the service will also seek content from other labels.

Each company will provide services to support the joint venture. Dada will provide access to its proprietary technology and billing platforms; and SONY BMG will promote the joint venture’s services through via its web properties, video network, CDs, media buying, third-party media and physical retail relationships. Each party will also provide funding to meet the capital needs of the joint venture.