Universal Music Group and YouTube are close to a final agreement on partnering to create a Hulu-like music video website. The service is currently code-named Vevo. If the deal goes through, Vevo would become the largest music oriented website on the web. A final deal may not be reached for several weeks.
Universal’s music videos have been viewed 3.5 billion times. Doug Morris, CEO and Chairman of Universal spearheaded the YouTube partnership campaign. This video website would give Universal a bit more leverage in setting up a revenue sharing agreement with YouTube. Sony, Warner Music, and EMI have also been approached regarding the new potential music video website.
More on this story as it develops.