After The Wall Street Journal hinted last month that Universal Music Group and YouTube were in talks to create a new music-video platform, the two companies have now announced that they will, in fact, be launching a new music video channel called VEVO (not Vivo as The Journal originally claimed).
Once the service launches “in coming months,” Universal Music Group’s entire catalogue of videos—from artists like Lil Wayne, U2, Taylor Swift, Fergie, Amy Winehouse and No Doubt—(as well as artist- and user-generated content) will be available exclusively through vevo.com and a new VEVO channel on YouTube, with a VEVO embedded player.
UMG and YouTube’s new deal, in which the two companies will share ad revenue, scraps the duo’s old arrangement, in which Google paid UMG a fraction of a penny every time one of UMG’s videos was played, Media Memo’s Peter Kafka reports, adding “That’s a big deal: YouTube has complained that the previous deal was a money-loser, while the labels have complained that they weren’t getting adequately comped for their content.”
The landmark deal also puts pressure on the other labels to get on board. Warner Music Group is removing its videos from the site after the two sides couldn’t agree on a new deal. Meanwhile, Sony Music recently reupped its old deal with Google. However, understandably, it seems like the other labels are waiting to see just how well VEVO does before they jump on the bandwagon.
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