Network Live JV Dissolves; Production Team Tries Again With New Name, MSN

I was in the midst of finishing up a post confirming the failure of the complicated one-year AOL-backed joint venture known as Network Live when a new wrinkle entered the picture: word that the production team from Network Live is starting a new live music distribution deal with AOL competitor MSN under the name Control Room. The multi-year exclusive online deal starts Oct. 2 and, in keeping with MSN’s strategy, is global. Equally fitting, the launch performance is John Legend live from the Royal Albert Hall in London. MSN also has rights to stream Control Room to other platforms including Windows Messenger, Xbox 360 Live, WMP and Media Center. Zune is not mentioned. — The JV with partners AOL, AEG Live and XM was already in the works before Live 8 but went public in July 2005 in the flush of excitement over the global music event produced by Network Live head Kevin Wall and successfully distributed online by AOL. It sounded good but turned out to be more of a one-hit wonder, never quite delivering on the full promise. But NL did produce 59 live events, some of which are still licensed to AOL and others.
Update: So why did the hyped JV fizzle? We had heard several times that the partners were concerned about the burn rate but I’ve been assured that wasn’t the case. the comedy channel that was being fast-tracked didn’t materialize and neither did the anticipated back-end revenues from DVD sales and the like. Someone familiar with the thinking by one partner said the whole effort may have been premature. At its most basic though, the problem probably lies in the number of partners and the various agendas at play. When the year was up, it sounds like no one could see a reason to continue with that structure. In an interview this evening, Kevin Wall said the new company only has one core business objective instead of trying to meet the needs of multiple partners. When the distribution deal with AOL was over, they talked to a number of players and wound up with MSN because of its global reach, its involvement with multi-platform technology, the promise of DVD-quality delivery regardless of the device. Dealing with distributors who don’t have equity — including MSN — is a different matter. When I asked about the plans that didn’t materialize, he said, “We’re still going to be going there. To be continued.”
What happens to the name? I was told earlier today that Wall’s team may not have the legal right to the name but Wall said that wasn’t an issue and that they simply wanted to have a new name that “better represents” the new direction. What he didn’t say is the name is being used by AEG Live; the Network Live url goes to a page that links to Control Room as the company “formerly operated under the name Network Live;” to AEG as the company “now operating the name Network Live” and to AOL Music.
MSN: According to Rob Bennett, GM-entertainment and video services for MSN, talks were underway for several months. Six events are planned through 2006, including Legend followed by Rod Stewart on Oct. 9, with a hoped-for total of 36 shows. “It really depends on the timing.” As for Zune, “We don’t have anything specific to say about Zune right now, but we absolutely intend to explore delivering the Control Room content to other Microsoft entertainment experiences.”
More On Control Room: AEG may have the name but Control Room has distribution partnerships from Network Live including Qualcomm/MediaFlo, 02 in the UK, DirecTV and National CineMedia, LLC.
Related: @ CTIA: Interview: Kevin Wall, CEO, Network Live: New Vertical Launch Will Be Earlier Than Planned: Audio
– Network Live Investment: $30 Million
– AOL, AEG and XM To Launch On-Demand â