YouTube may show media companies the way to share videos and make revenue, but it seems these companies then take what they’ve learnt and strike out on their own.
Hulu For Music
The latest to try this strategy could be the Universal Music Group, which is said to want to start a ‘Hulu for music’.
YouTube is one of the most trafficked sites in the world, and by far the biggest video-sharing site on the Web. But being popular doesn’t guarantee success, especially when the companies you do content deals with pack up and ship out.
NBC pulled all of its content from YouTube last year (as well as iTunes) when it set up its own website to host content. And Hulu is doing very well. So well in fact that others now want a piece of the action.
Universal Portal
CNET is reporting that the Universal Music Group is considering setting up a music video portal online, a kind of ‘Hulu for music’ that would put all of its artists video content in the one place.
As well as videos by the label’s music artists, which include Amy Winehouse, The Killers, and Mariah Carey to name but three, there would also be original programming built around those properties. I can imagine interviews and concerts being a must.
Money, Money, Money
The reasoning behind this move would be money – isn’t it always? Doug Morris, Universal’s chairman and CEO, is said to want to squeeze as much revenue as possible out of his companies assets, and the online sector is a big part of that.
At the moment, YouTube, and a host of other video sites, have deals in place with the big four record companies that see their music videos made available for a share of the advertising revenue.
Music Videos Are Huge
And make no mistake, music videos are a hugely popular part of Web video, with most of Universal’s $100 million revenue from video coming from YouTube.
Music videos are also a big source of YouTube’s phenomenal traffic. Not only is Avril Lavigne’s Girlfriend the most watched video on the site, but Universal’s YouTube channel is also by far the most popular.
It has generated over 2.6 billion views in the past year, and if Universal now does choose to split, that traffic will likely be all theirs. No wonder a portal is being eyed up.
Renegotiation
Universal is due to renegotiate its licensing agreement with YouTube soon, and while the videos are likely to remain on the site regardless of whether this ‘Hulu for music’ gets the go-ahead, it could change the relationship somewhat.
Related Ad
Replay Media Capture – Record Videos From YouTube
