Sony Music Entertainment (SME) has signed on to VEVO, the Universal Music Group (UMG) led and YouTube powered premium music video and entertainment service. The announcement was made today by Doug Morris, Chairman & CEO of UMG, and Rolf Schmidt-Holtz, SEO of SME. Terms were not disclosed.
VEVO is designed, in part, to give partner labels more control and revenue than YouTube does currently. Content will be available on YouTube through a newly created VEVO channel, on VEVO.com and through a VEVO embedded player. The service will also serve as a syndication platform for other sites.
In addition to SME and UMG, VEVO is exploring additional strategic participation by third-party investors to join this innovative entertainment platform as equity partners.
“We are delighted that SME has joined us in this exciting new service that will further transform premium music content into a legitimate commercial enterprise that benefits fans, artists and advertisers,” stated Mr. Morris. “VEVO will harness the power of the enormous traffic generated by YouTube and direct it to a dynamic destination created specifically for consumers and advertisers alike.”
“We are excited to be participating in VEVO with Universal
Music Group. SME is committed to delivering the best possible music experiences
to consumers and with VEVO, we share a common vision of offering music videos
and other premium video content from some of the world’s greatest artists in an
attractive, clean and intuitive environment that appeals to fans and advertisers
alike. We look forward to working with VEVO to develop a first-class destination
that will attract a massive online audience from day one, boast some of the most
desirable demographics on the Web and develop new and innovative ways to
monetize music video,” commented Mr. Schmidt-Holtz.
