Vivendi plans net venture expansion

Vivendi Universal: Signed a deal with Sony and Yahoo

Media giant Vivendi Universal has said its agreement with Yahoo and Sony to distribute music on the net could be expanded to include TV and film content.

Vivendi chairman Jean-Marie Messier told the Wall Street Journal the company would be discussing new forms of content with Yahoo in the near future.

We believe that Yahoo could be the privileged partner of Vivendi Universal and vice-versa

Jean-Marie Messier

The expansion could see the alliance between Sony, Vivendi and Yahoo rivalling the venture between AOL Time Warner.

The music of Vivendi Universal and Sony Music - more than one million titles - will be available for a fee through the Yahoo website, the world's most widely used portal.

Summer launch

Duet, the name of the new company formed between Sony and Vivendi, is scheduled to launch this summer and the three companies hope to distribute about half of all music on the net.

Mr Messier said: "We believe that Yahoo could be the privileged partner of Vivendi Universal and vice-versa.

"We have other content. Let's discuss this other content with Yahoo."

If Vivendi was to expand the content on offer it would give the company a better foothold in the US market where its distribution channels are considered weak.

But Mr Messier denied that an expanded agreement with Yahoo could lead to an eventual merger.

Downplayed speculation

He said that Vivendi's links with the US internet firm would remain "soft" and downplayed speculation that Yahoo could sell itself to Vivendi.

Mr Messier also said he hoped Duet's music content could be provided to AOL internet users, despite the fact they are rival services.

"At the end of the day our music has to be distributed on AOL and vice-versa. That's what consumers want," he said.