The Future of Music Videos
MTV is still very important to the music business. While music and music videos are an integral part of their online, cable and satellite channels they remain focused on serving a younger demographic scripted and reality television programming. What MTV solely used to be is now self-serving at YouTube, as well as an industry run music video website called VEVO.
VEVO describes itself as a music video website. They started as a joint venture between Sony Music Entertainment, Universal Music Group and Abu Dhabi Media with EMI licensing its content to the group without taking an ownership stake. When VEVO and Warner Music Group weren’t able to agree on a licensing deal, MTV aligned with WMG forming a competitive alliance. This put three of the four majors (UMG, SME and EMI) with YouTube, the largest provider of online videos, against WMG and MTV, a formidable foe given MTV’ influential online, cable and satellite channels.
YouTube has a firm grasp of online videos as they grab about 150m uniques every month. VEVO is the #1 channel on YouTube grabbing 60m of those 150. Videos like Katy Perry’s “E.T.” can reach 4m users in as little as 5 days! Impressions of this size appeal to TV and online advertisers both nationally and internationally.
VEVO and MTV are very close on a pact that will close out 2011 as one of busiest music-business transition years, maybe ever. UMG, SME, EMI and VEVO + MTV and WMG = All four major labels videos will have the ability to be licensed and distributed on VEVO and MTV online, cable and satellite properties.
What does this all mean?
Global Music Video Domination.
Major labels know that online videos are just as relevant as their tv counterparts. Imagine being able to open your computer (or phone/ipad etc.) and watch any music video you want in any country at anytime without any legal restrictions. Its inevitable and this might be one of the best decisions the music industry has made in the last decade.