One of Google’s (GOOG) best chances at making money off YouTube could be via professional content deals like Vevo, a “Hulu for music videos” partnership with Universal. So it’s good news that Sony, another major record label, has joined up.
MediaMemo’s Peter Kafka: I’m told that Sony will contribute cash and its library of music videos and will become an equity partner in the site, which until now has been wholly owned unit of UMG. Sony had already signed a deal with Google (GOOG) earlier this year to keep its music on YouTube, so I’m not sure what that means.
The release below makes a reference to Vevo/UMG “exploring additional strategic participation by third-party investors…as equity partners.” While that could additional music labels like Warner Music Group (WMG) or EMI, I’m told that the line is alluding to interest from brand advertisers. Not sure how that would work, or why Universal would want to announce it in a press release before they’ve got a deal, but we’ll see.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.