UMG COMPLETES VOD HAT TRICK
New Revenue Stream Starts to Flow
Universal Music Group, the Shaquille O’Neal of music companies (as in “most dominant”), has just completed a deal with Yahoo for video-on-demand through Yahoo! Music. This new arrangement makes UMG the first music group to nail down deals with all three major VOD providers, having already reached agreements with AOL and MSN, the world’s most trafficked online destinations. UMG’s VOD initiative, the first of its kind in the music business, will provide the company with a new revenue stream.
This announcement builds on UMG's existing agreements with America Online (AOL) and Microsoft (MSN) to extend the reach of its video offerings to Universal Music Group is the first in securing video-on-demand agreements which fairly compensate content creators.
Said Chairman/CEO Doug Morris, “Universal Music Group is committed to being at the forefront of digital music and providing consumers with compelling and dynamic musical products. Not only are we the first to complete VOD deals with all three leading Internet service providers, but we are the first to create new revenue streams from our video product that will significantly benefit our great company and our artists.”
With Yahoo, AOL and MSN in the bag, UMG will now discuss what it characterizes as “fair compensation” for its video content with other ISPs and carriers.
