Sony, MTV Sign Music Video Licensing Pact : Entertainment: Deal gives network right to air work by Sony artists, raises questions on rival-channel plans.

Sony Music Entertainment Inc. said Tuesday that it signed a contract giving MTV Network worldwide rights to air the music videos of Sony’s recording artists. News of the deal raised doubts about Sony’s participation with other recording companies in a proposed rival music channel.

Sony’s announcement read like something of a peace treaty between Sony and MTV. Thomas D. Mottola, Sony’s music chief, hailed the first global music video licensing agreement with MTV as “one example of the strong spirit of cooperation existing between our two companies.”

Neither side would elaborate on the terms.

Plans for an MTV rival involving Sony, Time Warner, PolyGram, EMI and Ticketmaster were unveiled in January, but that venture has reportedly been moved to the back burner, in part because recent federal cable legislation that would make such a channel more costly to launch. A Justice Department antitrust inquiry has also unnerved some of the music companies.

Industry sources said Tuesday’s announcement suggests that Sony’s involvement in the new channel, and perhaps the venture itself, is in doubt. One source said that since the initial announcement, little progress has been made toward starting the channel.

Last summer, a similar venture involving Germany’s Bertelsmann Music Group and cable company Tele-Communications Inc. collapsed due to what they called “changing market conditions.”

The plan for Sony and others to compete with MTV caused hard feelings between MTV parent Viacom and the music companies. Last month, Viacom Chairman Sumner Redstone, speaking at a conference in France, said he was considering going into the recording business himself, because the major music companies “have already taken a shot at us” by trying to develop a rival channel.

The original Sony venture stemmed from some music executives’ frustration with MTV. They said MTV was not devoting enough air time to their music videos--which are important promotional tools for selling compact discs and audiocassettes--as it shifted to more original programming.

However, the music industry has reacted favorably to the recent restructuring of MTV sister channel VH1, which has become more current and music-driven.