YouTube (subsidiary of Google) and UMG aka Universal Mucis Group (subsidiary of Vivendi France) recently announced VEVO, a joint venture to launch later this year.
Vevo is a very interesting step towards the future.
Vevo is basically an ads driven music website where users will be able to watch music provided by UMG using YouTube Technology.
UMG will be the content provider, and YouTube the content platform distributor. As we said on this blog a long time ago, YouTube needs to turn its users into customers, and deploy its efficient platform technology to rich content providers. This is a very good step in the right direction.
The launch of Vevo (prossibly only the first step towards a big alliance with the Major league) signals a new strategy by YouTube; after the “channels” as YouTube branded content providers, here it comes the second step: Vevo is the next generation co-branded music website.
Vivo is a tipically win-win situation: Google offers its no-glitches no-problems super fast web platform, and UMG offers its music library. By the way, in their own markets (as video provider on the web and as music “provider”) these two are by far the bigger players.
No details have been disclosed about figures and responsibilities. But it seems this is a typical co-revenue-sharing agreement: both players will enjoy part of the money spent by advertisers on their website www.vevo.com
One last word, as visual and web designers, we like the new logo very much.
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Image credit: Vevo.com homepage on www.vevo.com
Is Vevo the next MTV? 