ChumCity Interactive has signed an exclusive one-year Internet distribution deal with upstart Jive Media that promises to give the content provider increased control over proprietary property purveyed on the Internet.

The deal comes in the wake of the controversy over Napster, which demonstrated the first generation of peer-to-peer networking on the Web, and caused a major backlash from content owners whose properties were being exploited without consent or reward. The ChumCity deal exemplifies the second generation of such technology in a way that allows content owners the power to control and monitor their property, says Maria Hale, managing director of ChumCity International.

‘Our relationship with ChumCity Interactive proves there is a way for content owners and Internet consumers to get along in the file-sharing universe,’ says Sean Mayers, CEO and cofounder of Jive Media.

The agreement provides CCI with the ability to leverage select video content from its library of new and archived video properties online (such as MuchMusic and FashionTelevision) for users to download, view and share through peer-to-peer networks, utilizing the Jive PlayerTM Portable Media Film solution.

The broadcaster only has the rights to broadcast material to which it owns the rights. However, for music videos and other properties it doesn’t own, it can only broadcast up to 30 seconds for promotional purposes.

While users will still be able to access the materials free of charge, the broadcasters can generate revenues in a secure environment. For example, if someone were to select a MuchMusic interview with Lenny Kravitz, a 30-second sample of one of his music videos might appear, with the additional opportunity of purchasing any number of Kravitz videos and discs.

Also, by providing packaging, distribution and digital rights management, Jive will effectively reduce CCI’s high bandwidth costs associated with delivering video content online.

‘Jive Player allows us to spend more time creating content and less time having to manage and deliver content,’ says Hale.

Jive Media, launched less than a year ago, is a downloadable video packaging, digital rights management and media delivery company headquartered in Toronto.

CCI, which plans to release its first few video segments via Jive in late May, is the fledgling company’s first large content provider.

The deal between CCI and Jive is formed under a revenue-sharing model. *