We’ve heard quite enough about the collapse of the music industry. Could this be the saving grace?
According to a report published by Billboard earlier today, Universal Music Group and Google (YouTube) are premiering an online music video service called Vevo sometime later this year. The service will host all of Universal’s promo material (including interviews, music videos, and performances) and, if successful, will continue to incorporate material from other major and independent labels.
The idea behind the service is this: When labels ship out their artist’s music videos online, they spread the wealth among a variety of services (Yahoo, YouTube, AOL, etc.) Because of this however, advertisers have their pick at these websites, meaning competition is low ($3-$8 per thousand clicks). The hope is to channel all music videos into one single service, thereby increasing competition amongst advertisers and boosting revenue (the goal is around $25-$40 per thousand clicks).
Much like the success of other “single stop” Internet services such as Hulu and iTunes, the plan is not only to offset the illegal distribution of copyright materials, but to provide funding for the labels and their artists who deserve to be making money for their work.
Though this could very well be just one of the many experimental new ways of coping with the age of bootlegging, I think it’s worth a shot. Sure, the advertising model is highly experimental, but why not take a chance?
What do you think, Muusers?