Playing the Rock Market

Most adults have never put much stock in hard rock, but they may soon find MTV, the rock-video cable channel, a promising investment. Considered a risky venture when it made its debut in 1981, MTV has already attracted an audience of 21.8 million households. In August the channel's owners, American Express and Warner Communications, are expected to offer the first public shares in a new company called MTV Networks, which comprises the rock network and a children's cable channel, Nickelodeon. The corporate owners plan to sell 5.1 million shares priced at $16 to $18 each.

Following estimated losses totaling $46 million during the past two years, MTV posted a profit of $1.4 million for the first quarter.

Revenues for the channel have ballooned from $2 million in its first year to $49.8 million for 1983.

Nonetheless, the tempo may slow down for MTV. To cover the expense of producing the costly videos, record companies have begun charging the network fees for tapes they once provided free.

In addition, success has spawned dozens of imitators, like NBC's Friday Night Videos. To fend off these rock-alikes, MTV is running commercials with testimonials from pop idols like David Bowie, who shout, "I want my MTV!" When the shares are offered, MTV hopes Wall Street investors will utter those same words.