Chicago (IL) – With television channels such as MTV no longer playing true music, and instead flooding time slots with reality television, what better reason is there for music groups to enter into negotiations with a venue in which they can broadcast and share their own video materials and performances?
The Wall Street Journal has reported that YouTube is in negotiations with Universal Music Group to host artist performances from artists on Universal’s Vivendi label.
The negotiations are in the latter stages as the two companies have been in conversation since last year. If the companies are capable of striking a deal, then Vivendi artists will be featured on a YouTube channel temporarily being referred to as Vevo.
A partnership between the two companies could result in higher revenues for both, as companies will be more apt to spend money advertising next to and on popular music videos rather than stations which carry their own style and flavor, like MTV. Additionally, this could be the introduction of a new venue for artists to showcase their own work, boosting album and MP3 sales.
A business model like this could additionally put an end to the royalty battles that have constantly gone on between social networking sites and artists seeking compensation for the sharing of their videos.