Nickelodeon and BMG Strategic Marketing Group Join Forces

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NEW YORK, Sept. 28 - Nickelodeon and BMG Strategic Marketing Group have entered into a multi-year agreement to expand Nick's presence in the music business and create a major music brand for kids and tweens featuring talent from the network, soundtrack music based on its hit shows and compilations. The deal was announced today by Jeff Dunn, President, Nickelodeon Enterprises, and Joe DiMuro, Executive Vice President, BMG Strategic Marketing Group.

Combining the innovative marketing and product development expertise of BMG Strategic Marketing Group with that of the world-class brand development and stable of Nickelodeon franchises is a winning combination. For BMG, the strategic partnership is one that clearly supplements the core strengths of the company's creativity and promotional acumen. The BMG Strategic Marketing Group is one that specializes in new business growth opportunities and the continued formation of Nick Records is a significant step in that direction.

"Nickelodeon is clearly the leader in children and tween programming and entertainment. We are excited to join forces with them," said DiMuro. "It's a perfect fit as we match their strength in the kid's market with BMG's unparalleled success in the music business." "We're thrilled to be teaming up with BMG, a leader in the industry," said Jeff Dunn. "Developing a record label will allow us to explore another avenue for showcasing Nick talent. Music plays such a vibrant role in kids' lives. Nick Records will give them great music and new choices across a variety of styles," he said. The deal teaming up Nickelodeon, the number-one entertainment brand for kids, and BMG Strategic Marketing Group, home to many of the world's top recording artists, will include Nickelodeon-branded soundtrack albums from Nick's popular TV shows.

The first project scheduled under the new deal will be the September 28 release of an album based on Dora the Explorer, the number-one preschool show on commercial TV. The album will feature all of the songs the show's fans have grown to love, including "We Did It!" and "The Map Song," along with two new tracks, "Fairytale Land" and "Magic Music Box," from Dora's Fairytale Adventure, airing September 24 on Nick Jr. The second release, Rugrats Holiday Classics!, will bow on October 12 and feature the Rugrats singing everyone's favorite holiday songs. Both the Rugrats and Dora titles represent the first available CD product for these properties. An important component of the new Nick Records label will be to produce albums marketed to tweens and fill a void in the marketplace for music for kids 9-14.

Product will include both music compilations from contemporary artists as well as original music and performances by popular Nickelodeon stars. The N, Nickelodeon's digital network for tweens and teens, will also provide content for the Nick Records label. Nick Records and BMG Strategic Marketing Group will support the label with consumer advertising, in-store merchandising and integrated marketing efforts. Nickelodeon, which is celebrating its landmark 25th anniversary this year, is the number-one entertainment brand for kids. It has built a diverse, global business by putting kids first in everything it does.

Nickelodeon has been the number-one-rated basic cable network for more than eight consecutive years. Nickelodeon Enterprises is the ancillary business unit of Nickelodeon Networks, responsible for licensing its own brands and characters as well as the properties of Comedy Central, Spike TV and non-Viacom properties. Nickelodeon Enterprises is active in all ancillary markets, including merchandise licensing, home video, interactive software, electronic media, online, wireless, book and magazine publishing, music, live tour and stage shows, theme parks and themed hotel venues. Nickelodeon Enterprises manages the largest TV-based licensing business in the world with $4 billion in retail sales. Nickelodeon, Comedy Central and Spike TV are trademarks of Viacom international Inc.

Sony BMG Music Entertainment is a global recorded music joint venture between Bertelsmann and Sony Corporation with a roster of current artists that includes a broad array of both local artists and international superstars, as well as a vast catalog that comprises some of the most important recordings in history. BMG Strategic Marketing Group is a fully integrated organization for the U.S. that brings together BMG Heritage, BMG Special Products, Partnership Marketing, Digital Licensing and Direct Response TV, as well as licensing activities on behalf of all the BMG U.S. labels. This structure of the BMG Strategic Marketing Group offers tremendous benefit to the company and its businesses by increasing coordination amongst various teams and business units responsible for all levels of exploitation, across product lines and across labels.