YouTube has partnered with Universal Music Group (UMG) to launch a new music video service called Vevo. Under their agreement, YouTube will provide the infrastructure for a new site at Vevo.com, to be populated with video from artists on UMG-owned labels such as Decca, Def Jam, Mercury Records, and Verve. YouTube will also host those videos on its own site, where they’ll be housed in a Vevo channel via an embedded player. The companies will share revenue for ads served on both Vevo and YouTube.
Keys: Marketing, distribution channels, strategic alliances, technology
Questions for discussion:
- Do you believe this strategy will become more common in the industry?Explain your answer.
- Which factors make this arrangement good for GooglesÃ¢â‚¬â„¢ YouTube, their partners, and customers?