The Eye: Webcasts, Digital Cable, Local Shows Helped Video Grow In '98

PROGRESS IN PROGRAMMING: Online music video programming made strides in 1998, but it continued to get a mixed reaction from much of the music industry.
Music video channels on the Internet‹although praised by many as viable alternatives to the usual music video outlets on TV‹faced continuing problems in getting video service from several major record companies. Meanwhile, Sony Music Entertainment, Atlantic Records, and Capitol Records announced that they would be launching their own online video channels. Atlantic was the first out of the gate with INSTAVID (www.instavid.com), which bowed in November. Sony's and Capitol's online video channels are expected to bow in 1999.
Multimedia company RealNetworks continued to dominate the online music video market as it introduced RealPlayer G2 for streaming music videos on the World Wide Web . . . After months of delay, the online video channel Vidnet (www.vidnetusa.com) launched in March. By the end of 1998, Vidnet became a public company when parent International Net Broadcasting was purchased by Sedmet Exploration Inc., a publicly traded oil and gas company.
The Box Music Network expanded its video jukebox format to its Web site (www.thebox.com) . . . The premiere telecast of VH1's "Divas Live" concert April 14 was the highest-rated program in VH1 history, drawing a cumulative audience of more than 6 million U.S. viewers, according to the channel. "Divas Live" spawned a hit album and home video, and it raised nearly $1 million for VH1's music education charity, Save the Music. It should come as no surprise that VH1 is planning another "Divas Live" special in 1999.
The biggest news in local music video programming was the formation of two coalitions for local music video shows: the Red-Eye Network (consisting of music programs on KRCA-TV Los Angeles) and the International Media and Advertising in Entertainment Group, a marketing group for local R&B/hip-hop music programs around the world.
NEW TV NETWORKS: On Aug. 1, MTV Networks launched the Suite from MTV and VH1‹a package of digital cable spinoff channels that includes flagship free-form channel M2, MTV "X" (hard rock/heavy metal), MTV "S" (Latin music), VH1 Soul (R&B), VH1 Country, and VH1 Smooth (jazz/new age). The Suite barely made a dent in the national consciousness, as it launched in only a few hundred thousand U.S. households. According to MTV Networks, that number is expected to grow in 1999.
BET announced plans to launch its own digital spinoff package called BET Soundz. At the 1998 Billboard Music Video Conference, TNN/CMT president David Hall said that he was a "digital spinoff naysayer" and that TNN and CMT would instead concentrate on developing their Internet ventures.
Access Entertainment Network, a cable TV infomercial channel featuring music videos and artist interviews, debuted in July but caused grumblings among some video promoters for its "pay-for-play" policy . . . Scottsdale, Ariz.-based Clifford Consulting announced plans to launch Fanfare: The Classical Music Network, a 24-hour cable-TV channel, on Thanksgiving Day 1999.
CHANGES AND LOSSES: MTV experienced another major restructuring of its music department, as Patti Galluzzi resigned as senior VP of music, Kurt Steffek exited as VP of music, and, after less than six months on the job, Ken Benson left as VP of music programming. MTV named former Jacobs Media consultant Tom Calderone to the position of senior VP of music, and the network expanded the title's responsibilities to include overseeing MTV's entire music department.
Longtime BET executives Jefferi Lee and Lydia Cole (executive VP of technology and VP of programming, respectively) resigned to pursue other interests . . . VH1 promoted Jeff Gaspin to the newly created position of executive VP of programming and production. He was previously senior VP of programming and production.
Elizabeth Bailey exited Arista Records as VP of video production. She was replaced by Melinda Kelly, previously VP of creative services at Island Records . . . Sony Music combined the video promotion departments of 550 Music and the Work Group, with the new video promotion structure headed by Doug McVehil.
And the music video community mourned the loss of director