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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.

Source: Clickz.com

Date: 4/10/2009

Keys: Marketing, distribution channels, strategic alliances, technology

Link: http://www.clickz.com/3633376

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 Googles’ YouTube, their partners, and customers?

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