Vevo, the music video site powered by Youtube launches today. The site will feature videos from three of the four major record labels – Sony, Universal and EMI. Warner Music Group is the only one not working with Vevo, although they are working with YouTube.
Professionally produced music videos are the most popular content viewed on YouTube. Now Vevo will offer music fans music video content, along with an online music store offering music downloads, merchandise created by artists, concert tickets and more. In the future a music video subscription service, offering both short videos as well as streamed concerts is likely to be added.
Vevo has announced a pre-launch partnership with CBS Interactive and will offer extensive music programming from the vaults of the CBS Interactive Music Group’s properties including Last.fm and more than 90 CBS RADIO music stations beginning next year. “Last.fm and CBS RADIO’s stations are producing a tremendous amount of unique video content every day – from long form concerts such as the “Live on Letterman” webcast series and annual special events, to acoustic performances and one on one interviews,” says David Goodman, President of CBS Interactive Music Group. “We’re excited to be part of the next generation of music video services, and look forward to all the benefits that go along with Vevo’s massive audience and reach including increased awareness of our efforts in this space to new revenue generating opportunities.”
The combination of high quality video along with lyrics and access to lots of information on favorite artists is expected to appeal to advertisers and command top dollars. The site will launch with partnerships with AT&T, McDonalds and Mastercard.
News Corp owned MySpace will purchase independent online music service Imeem, in a deal which is reported to be $1million in cash. Imeem has been in financial trouble for a while, and has run through an estimated $30million in investor dollars.
Among the investors, all four major record labels, although earlier this year Warner Music wrote off its investment in the service. In 2007, Imeem became the first ad supported on-demand online music service to negotiate deals with all four major labels. Those deals included equity which made partners of the four major labels. MySpace also has partnership deals in place with the four major labels.
A few months ago MySpace acquired online music service iLike, with 50 million registered listeners, for a reported $20million. Comscore estimated that Imeem had 16 million unique visitors in September. It’s impossible to compare these two numbers except to say that it doesn’t sound like Imeem is a lot smaller than iLike to me.
MySpace now owns two of the five online music services that announced partnerships with Google’s new music platform. The way that works is that Google drives traffic to partner sites who play the music and pay the royalties.
Recently Spotify delayed their US launch due to problems negotiating a license for ad supported on demand streaming with the record companies. Plug that info into the fact that Imeem was about to get acquired by MySpace for so little, and it’s easy to understand why Spotify is meeting with some opposition. Seems like the record companies want to limit their exposure on the ad supported revenue model…