Record labels are still searching for ways to earn money online and they may have stumbled upon a service that could bring them back into the value chain: it's called "Vevo". Universal Music started the site and they have already gotten a corsortium of the major labels to sign up.
Itunes has proven that there is still a market for downloading music singles. But it has also proven that people still love to watch music videos - and that they are willing to pay for them! Since MTV became a reality television show rather than a music video channel, there aren't many places these days to watch high quality music videos.
That's where Vevo comes in. Vevo is a music video site. It will host music videos from the major label, top grossing music artists. Universal plans to host music videos on its site and to complement the content with exclusive interviews, reality programming and live performances.
This time the music labels are not licensing and restricting content but making it all available in one easy to find space. And once they get a critical mass of users, they will be able to bring in the advertisers and start making big bucks again.
This model just might work. The videos on youtube are usually low grade and low quality. Vevo could ensure access to high quality and exclusive content. If it can pull it off, users may come en masse, and the music labels may finally be able to insert themselves back into the value chain.
Here's an article detailing a bit of what's to come...
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