UMG Questions YouTube's Worth, Considers Own Venture
October 13, 2008 at 3:39 PM (PT)
UNIVERSAL MUSIC GROUP Chairman/CEO DOUG MORRIS is publicly expressing dissatisfaction with the revenue potential of posting videos on YOUTUBE, and is openly considering a plan to build a website to showcase its music videos instead, CNET NEWS reports.
MORRIS told BILLBOARD that YOUTUBE doesn't get enough bang for the buck in terms of (CPM cost per thousand) and that should UMG forego the video search engine, it would likely partner with another label and start its own site in early in 2009. Last month, CNET NEWS broke the story that UMG was working on a HULU-esque site that would feature videos and other content from the label's artists.
CNET also reports that UNIVERSAL is currently in negotiations with YouTube about an extension, which naturally prompts the question, "Is MORRIS seriously considering a YOUTUBE competitor or is this just a negotiating tactic?"