MTV Rival Net Plan Dropped

CNET News staff
It seemed like a good idea at the time . . . but Warner Music Group, Sony Corporation Thorn EMI, Bertelsmann, Polygram NV, and Ticketmaster Corporation have decided not to take on MTV after all.

The group had planned to create a music channel for U.S. and Puerto Rico audiences. But the deal fell apart due to a complex set of circumstances. Most importantly, MTV, which is owned by Viacom, had raised concerns with Department of Justice officials over the prospect of competing with the companies that supply most of its videos.