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Headline, Industry News
YouTube, Universal in tune with deal
Tuesday April 14th 2009YouTube and Universal Music Group are teaming on an online musicvideo venture that will make available UMG’s entire catalog of nearly 10,000 musicvids when the service launches later this year.
The companies will share ad revenue on the Vevo.com site, a Vevo channel on YouTube and a tailor-made video player that can be placed on social-networking pages and other sites. The free-to-view package will carry ads, including video spots of up to 15 seconds preceding the musicvideo.
“We believe that video is the best opportunity for revenue generation right now,” said Rio Caraeff, exec VP of UMG’s eLabs digital business strategy unit.
“The advertisers and brands are more comfortable with video as a vessel for their message and their advertising spend. Streaming audio is harder to monetize under an ad-driven model right now.”
UMG chief exec Doug Morris is in talks with the other major recording labels — Warner Music Group, Sony Music Entertainment and EMI — about participating in the venture.
As an added incentive to UMG, the player will feature a button enabling users to easily buy the tunes digitally through Apple’s iTunes and Amazon.com, which send most of the revenue from music sales to the labels. For now, videos will not be for sale.
UMG, a unit of France’s Vivendi, will spend tens of millions of dollars on the project, and Vevo will be a wholly owned UMG subsidiary, Caraeff said. YouTube, a subsid of Google, will provide the technology.
David Eun, Google’s VP of strategic partnerships, said YouTube’s relationship with major content creators like recording labels has previously been “fraught with tension and animosity and sometimes lawsuits.”
“There hasn’t been a genuine partnership that I think this model represents,” he said.
In December, Warner Music pulled all of its music from YouTube, saying the payments it received did not fairly compensate the label or its artists and songwriters.
Viacom also is suing YouTube for $1 billion, saying the site infringes on copyrights of its shows, including Comedy Central’s “The Daily Show With Jon Stewart” and Nickelodeon’s “SpongeBob SquarePants” cartoon.
YouTube will continue to host and generate ad revenue off user-generated content, including recorded music accompanied by minimal original video, but those items won’t be hosted on Vevo unless they stand out in some way, Caraeff said.
Source: Variety
Headline, Industry News
YouTube, Universal in tune with deal
Tuesday April 14th 2009YouTube and Universal Music Group are teaming on an online musicvideo venture that will make available UMG’s entire catalog of nearly 10,000 musicvids when the service launches later this year.
The companies will share ad revenue on the Vevo.com site, a Vevo channel on YouTube and a tailor-made video player that can be placed on social-networking pages and other sites. The free-to-view package will carry ads, including video spots of up to 15 seconds preceding the musicvideo.
“We believe that video is the best opportunity for revenue generation right now,” said Rio Caraeff, exec VP of UMG’s eLabs digital business strategy unit.
“The advertisers and brands are more comfortable with video as a vessel for their message and their advertising spend. Streaming audio is harder to monetize under an ad-driven model right now.”
UMG chief exec Doug Morris is in talks with the other major recording labels — Warner Music Group, Sony Music Entertainment and EMI — about participating in the venture.
As an added incentive to UMG, the player will feature a button enabling users to easily buy the tunes digitally through Apple’s iTunes and Amazon.com, which send most of the revenue from music sales to the labels. For now, videos will not be for sale.
UMG, a unit of France’s Vivendi, will spend tens of millions of dollars on the project, and Vevo will be a wholly owned UMG subsidiary, Caraeff said. YouTube, a subsid of Google, will provide the technology.
David Eun, Google’s VP of strategic partnerships, said YouTube’s relationship with major content creators like recording labels has previously been “fraught with tension and animosity and sometimes lawsuits.”
“There hasn’t been a genuine partnership that I think this model represents,” he said.
In December, Warner Music pulled all of its music from YouTube, saying the payments it received did not fairly compensate the label or its artists and songwriters.
Viacom also is suing YouTube for $1 billion, saying the site infringes on copyrights of its shows, including Comedy Central’s “The Daily Show With Jon Stewart” and Nickelodeon’s “SpongeBob SquarePants” cartoon.
YouTube will continue to host and generate ad revenue off user-generated content, including recorded music accompanied by minimal original video, but those items won’t be hosted on Vevo unless they stand out in some way, Caraeff said.
Source: Variety
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Headline, Industry News
YouTube, Universal in tune with deal
Tuesday April 14th 2009YouTube and Universal Music Group are teaming on an online musicvideo venture that will make available UMG’s entire catalog of nearly 10,000 musicvids when the service launches later this year.
The companies will share ad revenue on the Vevo.com site, a Vevo channel on YouTube and a tailor-made video player that can be placed on social-networking pages and other sites. The free-to-view package will carry ads, including video spots of up to 15 seconds preceding the musicvideo.
“We believe that video is the best opportunity for revenue generation right now,” said Rio Caraeff, exec VP of UMG’s eLabs digital business strategy unit.
“The advertisers and brands are more comfortable with video as a vessel for their message and their advertising spend. Streaming audio is harder to monetize under an ad-driven model right now.”
UMG chief exec Doug Morris is in talks with the other major recording labels — Warner Music Group, Sony Music Entertainment and EMI — about participating in the venture.
As an added incentive to UMG, the player will feature a button enabling users to easily buy the tunes digitally through Apple’s iTunes and Amazon.com, which send most of the revenue from music sales to the labels. For now, videos will not be for sale.
UMG, a unit of France’s Vivendi, will spend tens of millions of dollars on the project, and Vevo will be a wholly owned UMG subsidiary, Caraeff said. YouTube, a subsid of Google, will provide the technology.
David Eun, Google’s VP of strategic partnerships, said YouTube’s relationship with major content creators like recording labels has previously been “fraught with tension and animosity and sometimes lawsuits.”
“There hasn’t been a genuine partnership that I think this model represents,” he said.
In December, Warner Music pulled all of its music from YouTube, saying the payments it received did not fairly compensate the label or its artists and songwriters.
Viacom also is suing YouTube for $1 billion, saying the site infringes on copyrights of its shows, including Comedy Central’s “The Daily Show With Jon Stewart” and Nickelodeon’s “SpongeBob SquarePants” cartoon.
YouTube will continue to host and generate ad revenue off user-generated content, including recorded music accompanied by minimal original video, but those items won’t be hosted on Vevo unless they stand out in some way, Caraeff said.
Source: Variety
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