Music videos are an integral part of YouTube, but the record labels which provide them want more than just a few cents each time someone watches one. Enter Vevo, a YouTube spin-off just for music videos and related content.
A Symbiotic Relationship
and the music industry, at least the big four record labels, have a symbiotic relationship. Music videos are the most popular group of vids on YouTube, providing traffic and revenue for the Google-owned site. While the labels, Universal, Sony, Warners, and EMI, make millions of dollars in revenue from the site.
But things have soured of late. The record labels first signed revenue-sharing deals with YouTube in 2006 and 2007, but those deals are now coming to an end. Neither side seems happy with the current agreements, with both wanting a bigger slice of the pie.
Off and On
This lead the Warner Music Group to remove all its videos from the site just before Christmas, 2008, after negotiations were said to have broken down. Just a few days later came rumors of a breakaway from the big four, who would work together to create a Hulu-like music video Web site.
Last month, Sony Music became the first major record label to sign on the dotted line for a new deal with YouTube. Details weren’t forthcoming so it isn’t yet clear which side backed down and gave the other side a bigger portion of the revenue generated by music videos.
Vevo On Way?
Now comes news, from an unnamed source, that YouTube is preparing to create a separate site just for music videos and related clips. Both CNet and The Wall Street Journal claim to have inside knowledge of the move which at the moment is just between YouTube and the Universal Music Group. The latter has already expressed an interest in creating such a site.
The site is tentatively being called Vevo, and is intended to become the number one video resource for the music industry. As well as music videos, there will be interviews, editorial content, and merchandising. The other major record labels have also been approached about joining in the venture.
All About The Money
The main incentive for creating and running the site, which would likely be separate but connected to YouTube, is, as always, money. Advertisers who aren’t keen on YouTube itself may have a different opinion on a much more streamlined, niche offering which caters exclusively to music fans and only contains premium, professionally produced content.
I certainly think this could work, both for the record labels and YouTube. MTV seems to have moved away from music videos, and Vevo could become the new choice for music lovers. And if there is money in it for all concerned, why wouldn’t both sides be keen?
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