YouTube and Universal Music Group have announced that they will team up and launch a music video website called VEVO. Google’s subsidiary and UMG are working on a music and video entertainment service which will feature only premium video content from UMG. According to Doug Morris, UMG’s Chairman & Chief Executive Officer, the two parties have also renewed and extended their contract which gives users the possibility to create and watch user-generated videos consisting of music from UMG.
VEVO will be launched later this year, and the revenues coming from advertising on the website will be shared between YouTube and UMG. The website will feature only premium content from UMG which will be available exclusively(!) via VEVO.com which will also feature a specially designed VEVO-branded video player.
“VEVO will bring the most compelling premium music video content and services to the world’s single largest online video audience. We believe that at launch, VEVO will already have more traffic than any other music video site in the United States and in the world. And this traffic represents the most sought after demographic for advertisers, especially as advertising dollars continue their shift from old media to new. VEVO will be uniquely positioned to monetize this opportunity and a host of others as we grow it to become “the” destination for premium music video content online. For music lovers who want the best in music videos, the VEVO experience will be second to none. At the same time, VEVO will expand the premium video marketplace, generate new revenue streams for content creators, and provide brand advertisers an unprecedented opportunity to get in front of a highly engaged audience. We couldn’t be more excited about the huge potential we see in the VEVO service,” said Morris.
The new music video website will probably be a success as UMG’s video channel on YouTube is the most watched on YouTube with 3.5 billion views. We’re waiting for VEVO to be launched, and we cannot wait to see what new features it has to offer.