UPDATE 1-Warner signs secondary ticket deal with Viagogo

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By Kate Holton

LONDON, May 9 (Reuters) - Warner Music Group Corp. (WMG.N) has signed a deal with ticket reseller Viagogo as the two groups look to benefit from the strong demand for live music.

Viagogo, which already has ticketing deals with soccer clubs Bayern Munich, Manchester United and Chelsea, said under the deal fans could buy tickets that were being resold through Viagogo and receive additional downloads or videos.

The company said the deal marked the first time a major music label had partnered with a secondary ticketing company and said it would allow Warner to tap into the cash stream and marketing information of fans provided by the secondary ticket deals.

"This is a safe way to secure resold tickets," Viagogo Chief Executive Eric Baker told Reuters in an interview.

"Before you would have had to go to a tout on a street corner or take your chances on an auction site."

The music industry has struggled in recent years due to Internet piracy and falling CD sales which have not yet been offset by the growth of digital music. But the popularity of live music and concerts has remained strong.

Warner reported second quarter results on Tuesday and said it would shift resources to boost digital distribution of music and video as it is struggling with soft music sales.