Vevo La Vida: Universal Music Group Hoping That It Can Create A Hulu Of Its Own
has decided to team up with Google’s money-hemorrhaging video site YouTube for a joint venture called Vevo, which will apparently “highlight” clips from the major-label behemoth and make money for everyone (maybe even artists? Haha, just kidding!) via ad revenue. What does this mean for you, the end user? Well, clips that use UMG-owned music—which right now are only available for YouTube viewing if you venture over to the site—will be embeddable on third-party sites, thanks to “a special VEVO branded embedded player,” which reads to me like code for “you’ll be clicking through lots of ads before you see that new Lil Wayne clip.”
Doug Morris is pretty excited about this:
“VEVO will bring the most compelling premium music video content and services to the world’s single largest online video audience,” stated Mr. Morris. “We believe that at launch, VEVO will already have more traffic than any other music video site in the United States and in the world. And this traffic represents the most sought after demographic for advertisers, especially as advertising dollars continue their shift from old media to new. VEVO will be uniquely positioned to monetize this opportunity and a host of others as we grow it to become “the” destination for premium music video content online. For music lovers who want the best in music videos, the VEVO experience will be second to none. At the same time, VEVO will expand the premium video marketplace, generate new revenue streams for content creators, and provide brand advertisers an unprecedented opportunity to get in front of a highly engaged audience. We couldn’t be more excited about the huge potential we see in the VEVO service.”
I would imagine that Vevo will follow the “high-definition walled garden” approach that has proven to be successful for Hulu; whether the other majors will sign on as well (and whether indies will be allowed to join the party at all) is up in the air—particularly Warner, which is still tussling with YouTube over royalty payments.
It’s Official: YouTube, Universal Music Launching New Video Site [Media Memo] Earlier: Major Labels Try To Get Back Into The Video-Distribution Game
