Will YouTube be more successful partnering with Universal Music Group?

YouTube and Universal Music Group have announced they would be partnering with the aim of launching an online music video venture, reports the Associated Press.

The venture is expected to launch later this year with Universal's entire catalog of almost 10,000 music videos. It is also projected that the companies will share ad revenue on the Vevo.com site, on a Vevo channel on YouTube and on a tailor-made video player that can be placed on social-networking pages and other sites. However, ad revenue generated by YouTube from user-generated content will not be hosted on Vevo unless they stand out in some way. 

Universal is expected to feature a button through which users will be able to buy music from iTunes and Amazon.com Inc. Moreover, it is known that Vevo will be a wholly owned Universal subsidiary. YouTube will provide the technology for the project. 

It should be reminded that many organizations partnering with YouTube have caused problems for the company. Warner Music pulled all of its music from YouTube, as the payments it received did not fairly compensate the label or its artists and songwriters. Neil Young was shutdown as a result of his arguing on his Web site that YouTube had underpaid Warner compared with other labels. Furthermore, Viacom Inc. is suing YouTube for $1 billion, blaming it was infringing on copyrights of its shows.

Source: The Associated Press