Sony has agreed to participate in a developing online music video service that was founded by YouTube and Universal Music Group, the company said in a press release.
"We share a common vision of offering music videos and other premium video content from some of the world's greatest artists in an attractive, clean and intuitive environment that appeals to fans and advertisers alike," Sony Music CEO Rolf Schmidt-Holz said in a statement released by Sony.
Sony is now the first large record label to agree to distribute content through Vevo, with other partners expected soon. Specific details of the agreement, including money-related topics, remain private between the two sides. It's likely Sony will get a slice of advertising generated when a viewer clicks on a text or video link in an ad-supported video.
YouTube is the most popular online video site, but has had an extremely difficult time monetizing its videos. To make amends with copyright holders, YouTube is trying to better monetize content so more advertisers are drawn to the site.
I'm curious to learn if Sony is contributing anything more than music to Vevoe -- will executives help develop Vevo? Will Sony invest money towards the project? Help promote it?
If Vevo is to be taken seriously -- and wants to gain supporters after it launches -- YouTube and Universal likely need additional partners to help provide content. The fact that YouTube and Universal were able to get Sony on board is a strong indicator for things to come in the future.
Both EMI and Warner Music are reportedly in talks to join Vevo later this year.
