Vevo has to be one of the most anticipated launches of the year and it is all set to go live on December 8th. The source is the Vevo twitter account. The announcement comes a day after Hulu said it too would make a foray into the music video space, with a deal to put up some music videos from EMI on its site.
If you have been living under a rock for the past 6 months, then Vevo is a new music video joint venture between the major record labels and YouTube. At launch the site will include music from Sony and Universal. This is a big move because the most popular sites at the moment on YouTube are the music video channels. Vevo allows YouTube to make even larger revenues because its a lot easier to place advertising against a quality peice of content like a music video, instead of the user generated content on its normal site.
Team Vevo email:
Dear member of the VEVO VIP pre-launch mailing list (Note: that would be anyone who signed up at Vevo.com for updates),
We are excited to tell you that VEVO will launch the evening of Tuesday, December 8!!
We’ve been working night and day for months to bring you the best music video and entertainment experience we can dream up, and in just about 3 weeks you can see it online for yourself!
The VEVO service at VEVO.com and at YouTube.com will go live in coordination with our launch event in New York on December 8th. We’ll be sure to let you know as soon as it’s up and running so you can start having some fun 
We can’t wait to show you what we’ve been working on!
In the meantime, please keep in touch and let us know what you think about all things VEVO!
I’m sure the majority of our readers have already heard about the new music video partnership between Universal Music Group and Google (Youtube). I thought I would just quickly recap and add in the press release and then discuss why this is a great idea.
The full press release is below for you to digest, and naturally we’ll have more analysis next week.
UNIVERSAL MUSIC GROUP AND YOUTUBE TO LAUNCH REVOLUTIONARY PREMIUM MUSIC AND VIDEO SERVICE
VEVO – UMG’s Premium Music Service Powered By YouTube To Launch In Coming Months
NEW YORK, NY and SAN BRUNO, CA, April 9, 2009 – Doug Morris, Chairman & Chief Executive Officer of Universal Music Group (UMG), the world’s leading music company and Eric Schmidt, Chairman of the Board & Chief Executive Officer of Google Inc., today announced that UMG and YouTube, a Google subsidiary, are working together to launch VEVO, a music and video entertainment service that will feature UMG’s premium video content.
In addition to VEVO, YouTube has renewed and extended its successful partnership with UMG that allows users to continue creating and watching user-generated videos containing UMG sound recordings and Universal Music Publishing Group’s compositions on YouTube through various territories around the world. The two companies will also share advertising revenue on YouTube and VEVO.
Launching later this year, VEVO will be a premium online music video hub built for consumers, advertisers and content owners that will blend UMG’s broad catalog of top artists and content with YouTube’s leading edge video technology and user community. YouTube will provide the technology infrastructure that will power VEVO and host UMG’s extensive library of professionally-created music videos on the new site. On YouTube, this content will be exclusively available through VEVO.com and a new VEVO channel through a special VEVO branded embedded player.
“VEVO will bring the most compelling premium music video content and services to the world’s single largest online video audience,” stated Mr. Morris. “We believe that at launch, VEVO will already have more traffic than any other music video site in the United States and in the world. And this traffic represents the most sought after demographic for advertisers, especially as advertising dollars continue their shift from old media to new. VEVO will be uniquely positioned to monetize this opportunity and a host of others as we grow it to become “the” destination for premium music video content online. For music lovers who want the best in music videos, the VEVO experience will be second to none. At the same time, VEVO will expand the premium video marketplace, generate new revenue streams for content creators, and provide brand advertisers an unprecedented opportunity to get in front of a highly engaged audience. We couldn’t be more excited about the huge potential we see in the VEVO service.”
“Technology has allowed fans to discover music in endless ways while creating new business opportunities for artists and labels alike,” said Mr. Schmidt. “At Google, we are committed to promoting greater innovation and choice and are thrilled to be working with UMG in what will surely be an exciting new service for consumers, advertisers, content creators and the music industry at large.”
At launch, people will be able to access UMG’s entire catalog of premium music video content, including professionally-created and full-length videos on VEVO, as well as artist-generated content and user-generated content hosted on YouTube. VEVO will also serve as a syndication platform, expanding the reach of the VEVO brand. This innovative platform is aimed at providing consumers the very best in digital music content while further extending UMG’s lead in the direct-to-consumer market.
Presently, UMG’s YouTube video channel has more than 3.5 billion views, making the UMG channel the most watched on YouTube.
Google has been struggling for a long time about how to actually monetize YouTube affective. Most advertisers aren’t happy about their ads being shown next to user generated content, while at the same time YouTube costs are skyrocketing and they cant afford to keep going the way they are.
Thus, Google has acknowledged that it is much easier to sell advertising next to controlled quality content, and that is why they have now partnered with Universal Music Group and is about to launch this new music video service. A music video portal is much needed on the internet and Universal don’t have the technology skills needed, but they do have the content, so that is where Google comes in. Additionally, Google is an advertising company, that is what they do and they do it very well.
The verdict is that Vevo is a great idea and it has been much needed for some time now. Hosting and bandwidth costs associated with Universal on YouTube will now be moved over to Vevo and because advertising revenues are going to be much higher, it will be more efficient for Google to offset costs with these videos. Revenues will increase and bandwidth will be moved away from YouTube and into Vevo, but this isn’t going to help monetize YouTube videos more effectively, it is just a diversification tactic.
