Universal & YouTube Launching Music Video Site Vevo

vevo

Google’s YouTube and Universal Music Group, the world’s largest recording company, are to launch a stand-alone music video website.

The companies are aiming to turn Vevo.com into the premier music video website. Discussions are under way to bring in the other major music publishing groups.

Vevo will be the only place web users can watch high quality video from Universal’s roster of big names including U2, 50 Cent and The Killers. The site will be accessed via a new Vevo channel on YouTube or directly at Vevo.com

YouTube will supply the online infrastructure and sales support to showcase Universal’s content. The two companies will share advertising revenue from the new site. Vevo, due to launch later this year, will also tap other revenue streams by offering concert tickets and merchandise in due course.

The deal marks a significant step in Google’s attempt to generate cash from YouTube, which it acquired for $1.65 billion in 2006. It could also help to ease the music industry’s search for greater profits from online music and video by attracting premium advertisers who have been put off in the past by YouTube’s high proportion of low quality user-generated videos.

Universal, owned by Vivendi, is by far the most popular channel on YouTube. Its music videos have been viewed more than 3.5 billion times.

Source: TimesOnline

Posted on April 11, 2009 | Filed Under Tech