The world's biggest Internet search engine Google and world's largest music label Universal Music is joining hands to launch a new youtube style site”Currently dubbed "Vevo," that would act as a hub for music videos.
The two companies have reportedly been working out the potential agreement since some time in 2008.This would feature premium music video content from Universal artists…and, eventually, perhaps artists from other labels as well. It may be Google's next youtube-like venture that focuses solely on music videos.
The youtube team would be assigned with creating an entirely separate site "Vevo" for Universal's video content, where under the proposed agreement, youtube powered up by Google’s technology and advertising sales support would distribute Universal’s video content to other websites .
With "Vevo"as it appears Google and youtube would be responsible for more aggressive ad sales to run on the music-video-only site. As "Vevo" will differ from youtube's already-existing partnerships with certain content providers in for shared ad revenue .Currently, youtube's partners agree to let their content be played on youtube in exchange for a small share of the ad revenue placed beside the videos, but this tactic has turned out to be less lucrative than both Google and the content providers had hoped.
Talks are still going on and no final agreement has been reached. But a deal could be inked within the next few weeks,"Vevo"will be likely to attract more traffic .
Such a deal would be youtube’s latest attempt to plump up its profits by selling more expensive ads off the back of premium content. Music videos are an extremely popular draw on the site
