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CNN, Nick, MTV Find New Partners

5/24/1998 8:00 PM Eastern

Several cable networks announced major partnerships last
week, including a multimillion-dollar deal between MTV Networks and online music retailer
CDnow Inc.

The deal gives MTVN $22.5 million in cash and stock. And
next month, CDnow will link its Web site with those of MTV: Music Television and VH1.

What the companies dubbed an "integrated marketing
alliance" will enable CDnow and MTVN to arrange event sponsorships, online music
retailing, copromotions and online/on-air advertising opportunities. For starters, CDnow
will become the exclusive online music retailer for the MTV Video Music Awards.

The other deals involved Cable News Network's
multiclient sponsorships related to the Entertainment Weekly installment of
CNN's upcoming CNNewsstand series, and a Nickelodeon deal with Campbell Soup
Co.

CNNewsstand: CNN & Entertainment Weekly will begin
with three Ogilvy & Mather clients as presenting sponsors: American Express Co., IBM
Corp. and U.S. Satellite Broadcasting. Each will have "several units" and
category exclusivity on the show, said Wilma Epstein, Ogilvy's senior partner and
North American director of media development and strategy.

These sponsors, however, won't contribute by promoting
the program to their customers, Epstein said, adding that she's looking to CNN for
that.

Steve Heyer, president and chief operating officer of
Turner Broadcasting System Inc., added that it's "not inconceivable" that
the company might consider a digital spinoff network covering entertainment, as well.

In the Nick deal, Campbell's flagship "Red & White" soup brand will be
tied to network-owned properties, starting with Blue's Clues and Rugrats.

Their marketing initiative will include two fully
integrated promotions and a new promotional soup product, "Campbell's Rugrats
Pasta." As of August, Nick's Blue character will appear on 18 million cans
of Campbell's "Alphabet" soup, said Mark Leckie, Campbell's vice
president and president of its U.S. grocery division. In addition, the advertiser will
sponsor the initial issue of Blue's Clues magazine for preschoolers, said

Cyma Zarghami, Nick's executive vice president and
general manager.

 

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April