YouTube Teams Up with Universal to Launch New Music Video Site

Google-owned YouTube has been hunting for deals quite fervently and lately quite successfully as well. The latest agreement involving world’s most popular video site aims at creating a new music video service called Vevo in partnership with Vivendi's Universal Music Group. Vevo which will be launched in the following months will be all about music videos offered in high quality and will be relying on revenue generated by YouTube's massive usage worldwide.

Both parts believe that the premium service, dedicated only to content from Universal, will attract more major names in advertisement who haven’t seen ads displayed next to content uploaded by users as a real opportunity for good business. The new quality content is expected to increase advertising rates and consequently increase revenues which the two companies will split in two.

In addition to this new venture YouTube was offered an extension on the rights to host music from Universal's catalog featuring artist like U2 and 50 Cent.