Majors Still Looking For More Gold In Music Video Hills
December 29, 2008 at 9:25 AM (PT)
The FINANCIAL TIMES reports that the major labels are continuing to look for a music video profit center well beyond the likes of MTV or the current incarnation of YOUTUBE. Among the possibilities: a partnership with HULU, the creation of a premium service on YOUTUBE, or a standalone venture between some or all of the major music groups.
Last year, the majors struck deals with YOUTUBE last year, but the revenue being generated from advertising on the site has left something to be desired by some parties. While UNIVERSAL MUSIC claims to make "tens of millions of dollars" from YOUTUBE, WARNER MUSIC refused to extend its pact with the service because it felt the compensation was inadequate.
That has led to growing sentiment that they'll soon turn more of their attention to HULU, the online television and film joint venture between NEWS CORP. and NBC UNIVERSAL, or even create their own entity. However, label sources told FT that "any such deal to create a standalone music video service would not replace existing deals with YOUTUBE, and that there was interest in supplying content for a potential premium service on YOUTUBE, which has begun to offer high definition videos."
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