LOGO will launch in February 2005 in markets including Los Angeles, New York, San Francisco, Boston, Philadelphia and Atlanta.
Advertisers on LOGO are being offered the chance to go beyond the traditional 30-second ad, with MTV Networks saying that major advertisers will be able to integrate their marketing messages into LOGO's programming via product placements, editorial segments within programmes, online and through development of contests and sweepstakes.
Viacom, owner of MTV Networks, said that the estimated population of gays and lesbians in the US was 15m, with a projected buying power of $485bn (£267bn).
The launch will aim to capitalise on the success of shows such as 'Will & Grace' and 'Queer Eye for the Straight Guy', the UK version of which started recently on LivingTV.
Tom Freston, chairman and CEO of MTV Networks, said: "Despite our nation's progress on civil rights and the growing visibility of gay people in business, society and even in television programming, what has been missing is a full-time home for this important and influential audience on television."
The channel is already looking to develop original programming for its launch, as well as being in the process of acquiring more than 100 movie titles from major studios.
Judy McGrath, president of MTV Networks Music and Comedy Group, said: "MTV Networks has a great history of connecting deeply with its audiences and it's our great hope that gay and lesbian audiences will connect with LOGO like viewers connect with our other strong brands."
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