Record labels invest in China content deal

Sony BMG and Warner Music Group are aggressively moving into the Chinese mobile content market by partnering with a Chinese joint venture formed by Access China Media Solutions and Seattle-based Melodeo. The new JV, called Access China Media Solutions, was formed early last year as a vehicle for Melodeo to distribute its technology to wireless carriers and mobile-phone users in China and other Asian markets.

Forming a joint venture with a Chinese firm seems like a smart move. U.S. mobile companies have long tried to tap the potentially lucrative Chinese market but have found it difficult without a strong local partner.

Melodeo has experienced some success with U.S. operators. The firm last year signed deals with both Cingular Wireless and Alltel to offer customers the ability to stream, or podcast, music and content to their mobile phones.

For more on this:
- see this article from the WSJ (sub.req.)

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