Filed under: Industry News | Tags: News of Note, Universal Music Group, YouTube
YouTube and Universal Music Group have reached a deal to create a hub just for music videos, called “Vevo.”
Obviously, this is another attempt by record labels to profit off of a tough online industry. The hub would be free, but YouTube and Universal would split profits on advertising. According to the linked New York Times article, music videos account for six of the top 10 most viewed videos on YouTube.
Universal is confident Vevo will become the flagship for online music videos, which is expected to launch later this year. If all goes according to plan, other record labels will join in. Basically, Vevo will be a music video version of Hulu.
It’s hard to tell how far Vevo can go, but one thing is certain–YouTube and record labels need a fair compromise that benefits both sides.
–Jett Wells, Co-Reviews Editor