Universal, YouTube in Talks on Standalone Music Videos Site

Authored by Mark Hefflinger on March 5, 2009 - 11:05am.

Los Angeles - Major record label Universal Music Group is close to negotiating a deal to create an online repository for major label music videos, and is working with YouTube (NASD: GOOG) on the project, codenamed "Vevo," CNET News.com reported, citing sources close to the matter. Universal already claims the most-trafficked music video channel on YouTube, with 3.5 billion views, and has previously stated that it is generating "tens of millions" of revenue from the site.

Sources told CNET that the other major labels have been approached about joining the service, while Wired.com cited a source who said that Warner Music Group (NYSE: WMG) is interested in joining up.

Warner recently began removing its music videos from YouTube, and muting the sound on videos that contain songs from its artists.

Part of the motivation for launching a standalone site, multiple outlets reported, is that the major labels could demand higher ad rates on a site where their content was not competing with millions of other videos, music-related or otherwise.

http://blog.wired.com/business/2009/03/universal-googl.html

http://snipurl.com/d6ha6 (Billboard)

Published in DMW Daily, March 5, 2009

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Comments

And it will only be 6 months

Submitted by Lawrence (not verified) on March 5, 2009 - 11:50am.

And it will only be 6 months after inception that it will begin giving us bogus reality shows, celebrity centered nonsense and enough countdown lists to drown a horse.