UMG SAYS VEVO YOUTUBE

The two will team up for VEVO, a music and video entertainment service on YouTube to feature premium video content from the world's leading record group.

The announcement was made today by UMG Chairman/CEO Doug Morris and Google Chairman/CEO Eric Schmidt in a video that's not yet available on the service.

In addition to VEVO, YouTube has renewed and extended its partnership with UMG that allows users to continue creating and watching user-generated videos containing UMG sound recordings and Universal Music Publishing Group’s compositions on YouTube through various territories around the world. The two companies will also share advertising revenue on YouTube and VEVO.

VEVO will launch later this year as a premium online music video hub built for consumers, advertisers and content owners that will take UMG's catalog of top artists and content with YouTube’s video technology and user community. YouTube will host UMG’s extensive library of official music videos on the new site, where it will be exclusively available through VEVO.com and a new VEVO channel through a special branded embedded player.

Morris said: “VEVO will bring the most compelling premium music video content and services to the world's single largest online video audience. We believe that at launch, VEVO will already have more traffic than any other music video site in the United States and in the world. And this traffic represents the most sought after demographic for advertisers, especially as advertising dollars continue their shift from old media to new. VEVO will be uniquely positioned to monetize this opportunity and a host of others as we grow it to become 'the' destination for premium music video content online. For music lovers who want the best in music videos, the VEVO experience will be second to none. At the same time, VEVO will expand the premium video marketplace, generate new revenue streams for content creators, and provide brand advertisers an unprecedented opportunity to get in front of a highly engaged audience. We couldn’t be more excited about the huge potential we see in the VEVO service. Now, how do I get this on my Blackberry?”

Added Google's Schmidt: “Technology has allowed fans to discover music in endless ways while creating new business opportunities for artists and labels alike. At Google, we are committed to promoting greater innovation and choice and are thrilled to be working with UMG in what will surely be an exciting new service for consumers, advertisers, content creators and the music industry at large.”

When VEVO launches, users will be able to access UMG’s entire catalog of premium music video content, including professionally created and full-length videos , as well as artist-generated content and user-generated content hosted on YouTube. VEVO will also serve as a syndication platform, expanding the reach of the VEVO brand.

Presently, UMG's YouTube video channel has more than 3.5 billion views, making the UMG channel the most watched on YouTube.