14 DAY TRIAL // Vevo is just a day away from launch and it's still making some rather big announcements, though not entirely unexpected ones. The music-video joint venture between Universal Music Group and Sony Music has just added its third media partner, EMI, which will provide the site with content from the label's artists, as well as those from indie labels represented by the company's distribution services. The label will not joint as an equity holder like the initial two, but rather just as a content partner.
“Our agreement with EMI Music marks a milestone in our mission to provide fans everywhere with the world’s best premium music video programming, when, where and how they want it,” Rio Caraeff, president & CEO of VEVO, stated. “We look forward to collaborating with EMI on introducing our users to new professionally-created entertainment products through a truly interactive platform. VEVO is about much more than just high-quality videos; it is also about original programming and strengthening the connection between artists and fans through a dynamic and engaging experience.”
For now, this leaves Warner Music Group as the only major label to be left out of the project. There were talks that it too was negotiating with the site along with EMI, but it looks like the negotiations haven't finalized yet or reached a dead end. Warner has also partnered with YouTube to create highly customized channels for its artists and this too might have played a role in the decision to skip Vevo for the time being. This, of course, doesn't exclude a deal in the future.
EMI will not be getting a stake in the venture and will be paid up front for licensing the content, but the sum will depend on the type of revenue the site manages to generate. The site came to life as an alternative to YouTube dedicated exclusively to music videos. It's backed by Universal and Sony and, interestingly, YouTube will handle the technical side including the site itself and the infrastructure. The joint venture also managed to secure funding recently from the Abu Daby Media Group valuating the project at $300 million.