Both the Wall Street Journal and cNet are reporting that Universal Music Group and YouTube are in serious discussions to create a hub for music videos. The other three major label gorups have or will be approached to participate in the new music video site tentatively named Vevo.
With more than 3.5 billion plays logged, UMG artists in aggregate are the most popular on YouTube and provide income to the label group measured in the "tens of millions of $'s". A more focused music site should provide even greater revenue, as well as, enhance YouTube's status as a top site for music discovery.
But how, when compared to the majors, would Vevo compensate indie artists and labels? Will YouTube live up to it's parent company Google's creed and "First Do Not Harm" to indie music? Details are still being negotiated, but early reports describe Vevo as a joint venture. If it ends up anything like the MySpace Music music joint venture, would indies get an equity share or againd be left feeling marginalized?
Universal head Doug Morris is famous for his take no prisoners negotiating style. It's difficult to imagine him accepting terms that did not give UMG control, equity and preferred payments. Only Google stands between the majors labels and another MySpace Music like deal for indie music. - Bruce Houghton
