Google’s YouTube and Universal Music Group, the world’s largest music company, said on Thursday they will launch a premium music video website as they bid to increase revenue from YouTube’s huge usage.
The new advertiser-supported site, featuring professional videos, will be called Vevo and is expected to launch in coming months, the companies said.
The deal is a boost for YouTube, which has been under increasing pressure from music labels and publishers who are frustrated that the popular site has been unable to pay higher fees for rights to use their music and videos.
“Ultimately we think it will increase in effect the CPMs and drive more revenue to YouTube and more revenue to the music business than they can have today,” said Caraeff.
YouTube and Universal Music will share advertising revenue generated by the site. Both sides are betting that building a premium site will help increase advertising rates. Many big brand owners have avoided advertising alongside YouTube’s ad hoc mix of user-generated videos.
The new advertiser-supported site, featuring professional videos, will be called Vevo and is expected to launch in coming months, the companies said.
The deal is a boost for YouTube, which has been under increasing pressure from music labels and publishers who are frustrated that the popular site has been unable to pay higher fees for rights to use their music and videos.
“Ultimately we think it will increase in effect the CPMs and drive more revenue to YouTube and more revenue to the music business than they can have today,” said Caraeff.
YouTube and Universal Music will share advertising revenue generated by the site. Both sides are betting that building a premium site will help increase advertising rates. Many big brand owners have avoided advertising alongside YouTube’s ad hoc mix of user-generated videos.
