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SCMP Reporter

Shanghai Media Group (SMG) will form a 100 million yuan joint venture with Universal Music Group, a division of Vivendi Universal, to facilitate expansion into the mainland market.

The two companies will launch  Sum Entertainment to develop and manage new artists for  music-related events such as television shows and concerts.

In addition, video and audio content will be provided  by the firm for mobile phones  to reach the county's 276.8 million handset users.

By focusing   on products other than compact discs, the joint venture hopes to avoid  losing revenue to piracy, which is rampant on the mainland.

'CDs can be pirated but artists can't be pirated,' said Harry Hui,  Southeast Asian president at Universal Music.

'Piracy is a problem ... You can beat piracy by staying away but if you invest in the market, you can still benefit.'

Carol Choi,  regional marketing director for Universal Music Asia-Pacific, will become general manager of Shanghai-based Sum Entertainment.

SMG will hold 51 per cent of the company and Universal Music the remainder.

Sum Entertainment will develop artists in China, manufacturing and packaging performers  in a fashion similar to the development of 12 Girls Band,  a group of female classical instrumentalists which uses sex appeal as much as musical talent to  attract fans.

The joint venture will leverage SMG's extensive media properties, which include television stations, newspapers and radio   operations.

'We are here to provide content,' SMG president Li Ruigang  said. 'Our alliance with the world-class music firm will explore a new revenue stream for us.'



Music venture makes play for mainland