Sony and Rhythm bring Alicia Keys, Mark Ronson, and More Free Music Videos to 3

March 31, 2008

UK mobile network 3 has signed a deal with Sony (NYSE: SNE) BMG to provide the operator’s subscribers with ad-funded music videos. The Guardian reports that a year following 3’s introduction of their ad-supported video service powered by Rhythm NewMedia, the agreement will expand the network’s ad inventory. The videos from Sony BMG—from the likes of Alicia Keys, Mark Ronson, and the Ting Tings, will be listed on the operator’s music portal, with ads--targeted by the age and gender of the subscriber--screened for up to 20 seconds before and after each song. Three UK currently has 4.45 million customers, with 1.4 million—or just over 31 percent—accessing its video service.

Still, there’s some question whether mobile web usage is high enough to support ad-funded models. Research firm Enders came out with a report on Friday, stating that the industry needed to encourage uptake of the mobile web first, before embarking on ad-supported models. The research firm noted, “Low page view usage per mobile internet user means that there is far more to be gained from expanding the mobile internet in access fee terms than advertising revenue in any case.”

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