Sony BMG Joins Dada to Build Mobile Social Network

Just in case the world needs yet another Web site for sharing photos, videos and other assorted content, Sony BMG has joined up with Italian mobile-oriented social networking site Dada to build an entertainment service that works with both PCs and cell phones.

The two companies will form a joint venture in the United States with equal ownership; Sony BMG will provide its music and video content, while Dada offers the Web-based infrastructure. Both companies will provide support services, and revenues will be generated from subscription and per-download sales of audio, video and ringtones, as well as advertising.

According to the announcement made on Monday, "The joint venture will include and build upon various direct-to- consumer offerings contributed by the parents, and will be supported by a full portfolio of web-based services designed to foster interaction between users and encourage a sense of community, including photo and video uploading and sharing, dating, blogs, social networking, and user-generated content."

But what does this really mean for the companies? Dada will utilize Sony BMG and its catalog of content to expand its reach into America, where it has failed to make much of an impression, and Sony BMG will be able to take advantage of Dada's platform and mobile reach to combat Web moves made by competitors such as Universal.

Dada USA CEO Massimiliano Pellegrini will helm the new joint venture, and Sony BMG will likely have little involvement in the actual operations. In fact, Dada says it is open to licensing content from other publishers as well, although Sony BMG will provide much of the advertising force behind the venture.

The companies expect to complete the formation of the joint venture in the fourth quarter of this year, and have yet to announce any partnerships with mobile operators. Dada currently makes its service accessible via the portals of the wireless carriers.