Turn off the radio. Turn on the video.
Sony Music Entertainment joined Universal Music as a content provider and equity stakeholder for Vevo, the music video destination site also part-owned by Google’s YouTube. The labels also promise additional exclusive content like interviews and profiles.
Indie label consortium A2IM signed up as well, and both Warner Music Group Corp. and EMI Group are in talks to do the same.
It’s hard to imagine a reason anyone with the rights to music videos wouldn’t license them to these guys, since they’ll get a share of ad revenue from Vevo and its related YouTube channel without any risk. As for Vevo itself, the business model calls for selling downloads, tickets and merchandise in addition to ads.
(Title lyric from Cheap Trick.)