I want my Vevo! OK, it doesn’t really have the same ring to it, but Google and Universal Music Group (UMG) are hoping that their just announced partnership to create an online music video site, called Vevo, is at least partly as successful as its television precursor, MTV.
Announced on the YouTube blog, Vevo will be a music and video entertainment hub for “premium” UMG video content. As expected, it will be owned by UMG, but based on YouTube technology and feature a special Vevo-branded video player. Plus, UMG CEO Doug Morris says he is in talks to bring other music labels on board (Sony Music Entertainment, Warner Music Group and EMI have all reportedly been approached to join the site).
Wired reports that the deal means that all of UMG’s video assets (including music videos, interviews, concert footage, etc.) will be hosted on Vevo, and that other sites, like YouTube–and eventually AOL, MTV and Yahoo–will embed UMG’s content from Vevo rather than licensing it directly from UMG and the other labels who choose to join.
According to CNET, both UMG and YouTube see the site generating not only lots of traffic, but far more targeted traffic than UMG’s current YouTube channel draws. With all those users coming specifically for premium music video content (without YouTube’s accompanying user-posted fare), both companies see huge opportunities in terms of advertising and branding. As Morris said in a statement:
“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.”
And it certainly has a good headstart. Currently, UMG’s YouTube channel is the largest by far, generating 4 billion views. Plus, the move helps clear up a lot of problems Google’s been facing with music videos on YouTube. Rather than pay licensing fees, Google instead decided to remove music video content from YouTube in the U.K., leading to a chorus of complaints. If Vevo works, it will make the licensing and copyright issues far more straightforward, while at the same time, garnering far more robust advertising dollars. As Wired says:
The purpose behind Vevo is to sell advertising at higher rates than YouTube does now. If that means loads of overlays, pre-roll and post-roll advertising, users might revolt. On the other hand, there could soon be no other game in town, at least as far as some of these videos go. If the rest of the majors join, Vevo could become “the” (as in, “the only”) place on the web that can legally play or allow other sites to embed this desirable content. It could end up powering every licensed service you can access.
It’s funny. If Vevo works and does become “the” music video destination online, Google will have finally hit on a way to monetize YouTube. But it will have succeeded only because it created a separate, music conglomerate-run, decidedly non-YouTube, non-user-generated site. Kind of ironic.
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