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November 20, 2002 4:19 PM PST

Sony Music sets sights on mobile market

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Record label Sony Music Entertainment said Wednesday that it purchased a small New York wireless entertainment company as part of a broader move to expand its products for mobile phones.

Start-up Run Tones and its executives will form the core of Sony's new Mobile Products group, which will manage products such as ring tones and online listening services aimed at users of cell phones and other mobile device.

"This is an interesting way for us to bring some of the technology into the company and flesh out our efforts," said Thomas Gewecke, Sony Music senior vice president of business development.

Sony and other record labels are increasingly looking toward the wireless arena as a promotional vehicle, a potential source of revenue, and ultimately, even a means of distribution. New mobile phone network technologies and

A few labels have toyed with more ambitious projects, such as the now-defunct HitHive's online music storage service, which cell phone subscribers could tap into to listen to previously stored songs. The crash of the Internet market took its toll on that and other wireless content services, however.

Gewecke said Sony's new division could ultimately look at distribution of music over cell phone networks as well as promotional products and services, depending on how quickly network and handset technology evolved.

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