Sony BMG, a joint venture of Sony Corp. and Bertelsmann AG, has allied with Italian Internet firm Dada SpA to form a U.S.-based JV, Dada Entertainment LLC. The venture's angle is to provide direct-to-consumer entertainment services with mobile and Web offerings. The new firm, owned by the two parties as a 50-50 split, will be led by Dada USA CEO Massimiliano Pellegrini. Sony BMG can propose a CFO.

Sony BMG is providing the JV access to its music and video content, but also allows for Dada Entertainment to obtain content from sources other than its current content providers. Dada can also look for strategic partnerships with other organizations, including media groups and mobile operators. While the JV will garner most revenue from subscriptions and pay-per-download services, the firm created a "friend$" program, based on Google AdSense, allowing users to earn money through sharing of advertising revenue generated on their personal spaces and through the community pages containing their content.

See more about the venture here

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