updated 04:25 pm EDT, Thu April 9, 2009
Google Universal Make Vevo
Google and Universal Music have announced on Thursday that they will cooperate on the release of Vevo, a new music and video entertainment service that will launch later this year. According to a Thursday CNET interview, the YouTube owner and the largest recording company will share all ad revenue, with YouTube handling the technical operation of the website while Universal provides the content.
Thus far, only Universal content and artists will be accessible on the website, though the company's chief executive, Doug Morris, says he is in negotiations with other top record labels. Meantime, a renewed licensing agreement between YouTube and Universal will have the latter's content appear on the former at the same time as it's being offered on Vevo. Vevo is YouTube's first external website but Google CEO Eric Schmidt believes there will be more.
Universal Music's Morris believes Vevo will be the most visited music video site, even at launch. He also said the demographic it will attract is the most sought-after by advertisers.
Earlier today, Sony Pictures confirmed this week's earlier rumors about being in talks with YouTube on bringing full-length movies to the online video service.
The existence of Vevo confirms previous rumors that Universal and YouTube were in heated talks regarding royalties for music on YouTube.