Vevo: Premium Music video Site of YouTube and Universal Music
The world's largest music company, Universal music and Google Inc's YouTube, together will lauhch a premium music video website as they bit to increase revenue from YouTube's huge usage. The new site will be called Vevo.
Vevo expected to launch in coming months. Initial plan for Vevo come in addition to the renewal and extension of YouTube's rights deal to future video content from Universal artists such 50 Cent, U2 and kanye West.
Vevo will be a premium online music video hub designed to offer higher-quality videos, as opposed to the typical grainy and often user-generated videos on YouTube. The idea is for Vevo to attract more big-name advertisers and other content owner partners.
Many big brand owners have avoided advertising alongside YouTube's mix of user-generated videos. But now, both sides will be betting that building a premium site will help increase adversting rates. And both will share advertising revenue generated by the site.
Vevo will also serve as a syndication platform as YouTube and Universal expand the reach of the Vevo brand, the companies said.