O2 bolsters music focus with Prince's Trust deal

by Ben Carter, Marketing 23-Feb-05, 15:48

O2 is attempting to strengthen its position in the youth market by seeking to become the headline sponsor of a series of Prince's Trust concerts in London this summer.

The mobile firm is poised to strike a deal with the charity to sponsor all five of its concerts in Hyde Park. The entertainment group Clear Channel is understood to have been negotiating with O2 about the tie-up and is lining up several undisclosed acts for the concerts.

Each concert will have a 90,000 capacity and will be promoted under a new O2 music brand, expected to be called O2 Wireless.

The mobile operator, which has more than 13m customers in the UK, is investing £20m in its music strategy, which will have a summer focus.

In recent months it has been talking to sponsorship and media agencies about its plans.

The sponsorship will build on O2's involvement in last year's nationwide Party in the Park concerts (Marketing, 8 April 2004) and the promotion of its O2 Digital Music Player, which was backed by significant advertising when it launched last year.

O2 is now working on a replacement and has held discussions with several manufacturers to develop a device to rival Apple's iPod.

O2 and Clear Channel declined to comment on the music plans.