Youtube teams up with universal music group to create a music video site called vevo.
YouTube and Universal Music Group, the world’s largest music company, said on Thursday that they had reached an agreement to create a new online hub for music videos called Vevo. The agreement, which also includes the licensing of Universal recordings for use in user generated videos on YouTube, is the latest of many efforts by YouTube, which is owned by Google, to place more professionally produced content in front of its huge audience, and in turn earn more money from advertising.
Google and Universal said that they would share revenue from advertising on both sites, but declined to discuss specific terms of the agreement. The companies said they expected Vevo to be ready later this year, and they said they were in negotiations with other major labels to join Vevo.
Youtube is trying to sign deals with labels and studios to distribute porfessional content as part of their push to monetize the users. Expect them to do more of such deals.