What do You get when You cross U(MG) with YouTube? Well aside from a lot of U's in the sentence you get a premium music and video service.
Universal Music Group (UMG) and YouTube are going to create and launch a new service called VEVO which is set to be a music and video entertainment service that will feature UMG's premium video content.
The deal also sees an extension of the pre-existing agreement that allows users on YouTube to create thier own videos and use music from the UMG library of sound recordings and tunes in parts of the world.
On a business side, they say they will split ad revenue from the new VEVO venture. It's set to be a video hub that not only caters to content owners and consumer but also advertisers and will use teh UMG content with YouTube technology and community features. On YouTube, this content will be exclusively available through VEVO.com and a new VEVO channel through a special VEVO branded embedded player.
VEVO will, when it launches, provide consumers with access to the whole UMG catalog of premium music video content as well as artist and user-generated content. This innovative platform is aimed at providing consumers the very best in digital music content while further extending UMG's lead in the direct-to-consumer market.
Presently, UMG's YouTube video channel has more than 3.5 billion views, making the UMG channel the most watched on YouTube.