YouTube, Universal to Build a “Hulu for Music”?

The new deal between Google-owned YouTube and Universal Music Group had been subject of broad speculation and inquiry during its early rumors and later negotiations phases. Why was the preeminent video streaming site in talks with a music industry monolith?



Most assumed—and rightly—that YouTube would append and supplement its current model with an ad-based revenue component for the streaming of UMG-owned content. But, as a recent announcement by the two parties has revealed, the advertisement deal was only the beginning.

The two parties have announced the creation of a new video site, Vevo, which, allegedly, bears very close resemblance to popular Internet TV site Hulu. The two parties are already in talks with other Music Industrialists, including Sony Music Entertainment, EMI and Warner Music Group, with hopes of adding their catalogs to the site.

The idea isn’t novel by any means (Viacom made much of its MTV music video catalog available online at MTV.com last year), but, it does represent a sea change taking place within an industry that has struggled and largely failed to adapt to new technologies, emerging media and a changed consumer that no longer buys music in the traditional sense. Music Industrialists, like UMG and co, are starting to see advertisements as a possible revenue stream to decelerate, halt or even reverse the profit losses caused by reduced CD sales.

It might already be too late for many of the music industry, but, for the world at large, the move could prove a marked shift in music’s evolution from commodity to billboard.

For more information, consult the music review site. For more tech news, stick with the blog:

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