YouTube, Universal near new video deal
Universal Music Group and Google’s YouTube are close to sealing a deal to build a new home for music videos on the interwebs.
Under the proposed agreement, YouTube - propped up by Google’s technology and advertising sales support - would distribute Universal’s video content to other websites, according to anonymous sources cited by the Wall Street Journal.
The new site carries the working title of Vevo. Indeed, a quick search via Whois reveals that Vevo.com currently points at Universal’s servers.
Talks are still going on and no final agreement has been reached. But a deal could be inked within the next few weeks, according to the paper.
Universal is the biggest record label in the world and has artists such as U2, Amy Winehouse and Beck on its roster.
Such a deal would be YouTube’s latest attempt to plump up its profits by selling more expensive ads off the back of premium content. Music videos are an extremely popular draw on the site, which Google bought in October 2006 for $1.65bn.
: