UMG, YouTube Extend Deal, Prepare For Vevo Launch
April 9, 2009 at 2:12 PM (PT)
The UNIVERSAL MUSIC GROUP and GOOGLE-owned YOUTUBE have renewed and extended their partnership, which provides access to videos of UMG sound recordings and UNIVERSAL MUSIC PUBLISHING GROUP’s compositions on the video search engine through various territories around the world. The two companies will also share advertising revenue on YOUTUBE and the soon-to-be-launched VEVO.
VEVO, a premium online music video hub that will blend UMG's broad catalog of top artists and content with YOUTUBE’s leading edge video technology and user community, will debut later this year. "VEVO will bring the most compelling premium music video content and services to the world's single largest online video audience," UMG Chairman/CEO DOUG MORRIS stated. "We believe that at launch, VEVO will already have more traffic than any other music video site in the U.S. 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."
"Technology has allowed fans to discover music in endless ways while creating new business opportunities for artists and labels alike," GOOGLE Chairman/CEO ERIC SCHMIDT said. "At GOOGLE, we are committed to promoting greater innovation and choice and are thrilled to be working with UMG in what will surely be an exciting new service for consumers, advertisers, content creators and the music industry at large."