March 6, 2009 by Andy Russell
Sources are reporting that Universal Music and YouTube are closing in on a deal to build an independent site specialising in music videos only. The site has been called a Hulu for music and has been hotly anticipated and planned for within the music industry. This comes as all the major record labels continue the long process of renegotiating their terms with the streaming video provider, with Warner Music sensationally halting negotiations after it found the terms of the deal not to its liking.
Universal, it seems, are on the verge of going very much in the opposite direction by creating a venture very much larger than a simple agreement to show content on the site.
It makes sense when you think about it – another word for music videos is, after all, promotions. These things are essentially adverts anyway, and there’s not really much scope for selling them to people, so it kind of makes sense that they be shown for free.
As it stands, the other music labels would also be given the option joining the party, though I’ll wager that Universal’s videos would feature would feature slightly more heavily than Warners’ when eventually they are forced to go, cap in hand, to YouTube.
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