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MIKE REYNOLDS
Discussions about how to position and program a planned service that would merge components of MTV2 and The Box Music Network are expected to wrap soon.
Sources familiar with the negotiations say an announcement about the service, which would see The Box's operations melded into MTVN's 24-hour video service, could be made by the end of September.
Representatives for The Box and MTVN would say only that discussions about a possible union were ongoing with a goal "toward creating a very strong, core music service." The Box, which MTVN acquired from Liberty Digital in 1999, reaches about 20 million homes, while MTV2, with its emphasis on videos from new artists, has garnered about 12 million subscribers as part of the company's digital package known as "The Suite."
"They want to develop the right mix of interactive programming," says one source. "They're trying to gauge how many hours would be interactive."
The Box provides viewers with the option to watch videos for free or request a video from a menu at an average price of $1.99.
In addition to format questions, it was also unclear how MTV might price the new network. One MSO who recently met with an MTVN affiliate team says The Box was not discussed as part of "The Suite." He did say, however, that MTVN representatives indicated they would soon have a revised rate card.
MTVN charges a license fee of 35-38 cents per month for "The Suite," which comprises eight other channels: Noggin, Nick GAS, MTVS, VH1 Country, VH1 Classic, VH1 Soul, MTVX and Nick Too.
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