Youtube is teaming up with Universal Music Group to launch VEVO, a music video site featuring UMG’s videos. The site will be launched later this year. The move had been rumored since few weeks and it is coming together of the largest video Web site and the largest music company.
The revenues from the site as well as on universal channel on Youtube will be shared amicably by the parties.
It would give Universal a level playing field against piracy and would also usher in good money through the partnership. Youtube is also trying to slow down the litigation’s arising from the showcase of copyrighted material on their site by partnering with big music and video companies.
The forged tie-ups would help it to gain good rapport in music industry as well as improve the advertisers perspective of youtube services.
The main motive behind legal music services is the higher ad revenue generated by legal video service providers like Hulu, a joint venture between NBC and Fox.
Another partnership in making?
Youtube is also said to be vying for a tie-up with Sony to feature full length premium content on youtube. This partnership is said to allow Youtube to broadcast full length movies from Sony’s content fold.
Sony Pictures wants to boost the profile of Crackle.com, the studio’s own online video site, and a YouTube partnership could help promote the offering.
