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2009

Sony Music Joins YouTube And Universal For Vevo Music Video Venture

June 5, 2009 0

San Francisco — Following the sounds of its fellow entrepreneurs, Sony Corp’s Sony Music Entertainment has answered the call to join “VEVO,” the new online premium music video and entertainment service conceived by Universal Music Group (UMG) and powered by Google Inc’s YouTube when the site launches, and will bring with it a library of music videos from artists such as Beyonce, Britney Spears, and Bruce Springsteen, the companies said Thursday in a statement.

Vevo will begin its service sometime later this year presenting video content from at least the two largest recording companies, (Universal is the largest). Furthermore, Vevo is intended to help both YouTube and the recording agencies to better monetize their video assets, by classifying the premium music video assets from user-generated content that includes music from UMG and Sony artists.

The announcement was made Thursday by Doug Morris, Chairman & Chief Executive Officer of UMG, and Rolf Schmidt-Holtz, Chief Executive Officer of SME.

The move exhibits the first major record label besides co-founder Universal to sign on to the service to be called Vevo and expected to launch later this year. Sony and YouTube could not immediately be reached for comment.

Music lovers will be able to view professionally-created content from UMG’s and SMEs wide range of chart-topping artists through VEVO, the innovative online premium music video hub being built for consumers, advertisers and content owners that will combine the very best in top-notch music content with YouTube’s leading edge video technology and user community.

Some of the acts portrayed by the two labels include Amy Winehouse, U2, Bruce Springsteen, Duffy, Alicia Keys, Beyonce, Eminem, AC/DC, Kelly Clarkson, Lady Gaga, Carrie Underwood, Mariah Carey, Akon, The Killers, Mary J Blige, Black Eyed Peas, and Justin Timberlake.

Vevo will not only provide traditional music videos, but possibly also present reality shows, video blogs, and other content built around artists. Universal said in the statement that it is also looking for outside investors.

“We are very much pleased that SME has made alliance with us in this exciting new venture that will further transform premium music content into a legitimate commercial enterprise that benefits fans, artists and advertisers,” stated Morris. “VEVO will harness the power of the enormous traffic generated by YouTube and direct it to a dynamic destination created specifically for consumers and advertisers alike.”

The new service, which will be made available on YouTube through both the newly developed VEVO channel, on VEVO.com, the service’s marquee destination site, and through a special VEVO branded embedded player on YouTube’s Website, will include full-length music videos from the Sony and UMG artists. As part of the venture, YouTube will host all the videos and power Vevo’s backend infrastructure.

The service will also serve as a syndication platform for additional internet destination sites, expanding the reach of the VEVO brand across the worldwide web.

“We are excited to be participating in VEVO with Universal Music Group. SME is committed to delivering the best possible music experiences to consumers and with VEVO, we share a common vision of offering music videos and other premium video content from some of the world’s greatest artists in an attractive, clean and intuitive environment that appeals to fans and advertisers alike. We look forward to working with VEVO to develop a first-class destination that will attract a massive online audience from day one, boast some of the most desirable demographics on the Web and develop new and innovative ways to monetize music video,” commented Schmidt-Holtz.

Warner Music and EMI still have to sign up, but music industry sources say that discussions between the companies continue. Vevo is the brainchild of Universal Music CEO Doug Morris, who has long dreamed of a standalone video site where his artists’ music videos would be the marquee product.

Financial terms of the deal were not disclosed, and it was not immediately clear whether Sony was doing anything more in the partnership than providing its music to the site.

Earlier this year, Sony signed a deal to provide certain TV shows and films on YouTube.