Prodigy Acquires Interest in SonicNet, Expands Online Music Content

Strategic Insights -

Prodigy Services Company has made a strategic move by acquiring an interest in SonicNet, a popular online music content provider on the World-Wide Web. This deal represents the first direct investment by Prodigy, a leading online service company, in a content provider on the Web. SonicNet will provide Prodigy with exclusive content, including celebrity chats, marketing efforts, and a direct link to its site. In return, Prodigy will offer SonicNet support to develop specialized content, hire additional staff, and expand into new entertainment-related areas.

Key Takeaways:

  • Prodigy has acquired an interest in SonicNet, a popular online music content provider, in a deal announced on December 18, 1995.
  • The strategic move represents Prodigy's first direct investment in a content provider on the Web.
  • SonicNet will provide Prodigy with exclusive content, including celebrity chats, marketing efforts, and a direct link to its site.
  • Prodigy will offer SonicNet support to develop specialized content, hire additional staff, and expand into new entertainment-related areas.
  • The deal was announced by Ed Bennett, president and CEO of Prodigy, Tim Nye, CEO of Sunshine Interactive Network, and Nicholas Butterworth, principal of SonicNet.
  • Prodigy's Wildflower Partners division provided the funding for the deal, which is based on the size, scope, and potential of the company.
  • SonicNet will continue to operate as a separate company and will remain an independent site accessible by anyone with a Web browser.
  • The partnership is consistent with the vision of Sunshine Interactive Network (SIN) and SonicNet to reach a hip, young, and more expansive audience with fresh, creative content and programming.

Statistics:

  • Prodigy offers its more than two million members a range of news, weather and sports; financial information; educational content; games; reference materials; communications features such as e-mail, bulletin boards, USENET newsgroups and Chat; travel reservations; shopping; financial features such as a discount brokerage and online banking; and hundreds of other offerings.
  • Prodigy is the world's largest dial-up access provider to the World-Wide Web.
  • SonicNet is the World-Wide Web's leading alternative music and culture site.
  • SonicNet offers a range of content, including Chat Central, shows, reviews, links, and guides for dating, singles, and mystery theaters.
  • Prodigy has over two million members, making it one of the most recognized brand names in the online industry.

Sources:

  • Prodigy Services Company press release, December 18, 1995
  • Business Wire press release, December 18, 1995
  • Sunshine Interactive Network (SIN) website
  • SonicNet website
  • Prodigy website