backtop


Print 11 comment(s) - last by hydmoghul.. on Sep 29 at 2:59 AM

Universal believes it can monetize 100% of the video content on the site

Record labels are currently experiencing the lowest profits seen in decades. The problem, according to the recording industry, is digital music with lower profit margins and pirates. One place that the music industry is looking to improve profits is by monetizing music videos.

The music video is typically a sort of advertising method for the album the song is from. Universal Music Group (UMG) has decided that it intends to attempt to monetize the music videos by launching its own site similar to YouTube and Hulu.

According to UMG, it knows that the audience for a site like the one it plans is there. The company currently licenses its music videos to YouTube for play online. One of its artists -- Avril Lavigne -- has the most watched video of all time on YouTube for her song “Girlfriend”. UMG's YouTube channel is also the most watched on YouTube generating 2.6 billion views over the last year.

UMG plans to launch its own site for its artists’ music videos so it can more closely control the video content and get advertisers more comfortable with paying for marketing alongside the videos. The issue with YouTube has several facets. One of them is the overall poor quality of video on YouTube; the second issue is that much of YouTube's content is user generated and advertisers aren’t comfortable putting their brands alongside the user generated content.

By running its own video site sans user generated content, UMG hopes to be able to monetize 100% of its music videos. NBC Universal's Hulu is able to monetize all of its content thanks to professionally filmed video and TV shows.

If UMG can do the same thing with its own site for music videos, it could be a sign of things to come for all record labels that are looking for any way to improve profits.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

I wish I was the person
By tastyratz on 9/26/2008 2:37:32 PM , Rating: 1
Who coined the nickname "pirates" for people who illegally download content online.

It couldn't fit more perfectly with the record company sinking ships to point fingers.

Are they expecting to monetize this entirely by advertiser revenue or only subsidize the cost of a "premium membership"?

Anyone want to bet there WONT be an option that involves a form of direct payment from the consumer when they get greedy and decide they want more than advertising revenue?




RE: I wish I was the person
By Bateluer on 9/26/2008 2:41:38 PM , Rating: 5
Anyone want to bet that their videos will come with new god forsaken DRM scheme that trashes a user's computer?


RE: I wish I was the person
By TSS on 9/26/2008 7:13:51 PM , Rating: 2
anyone wanna bet their site will lack users because the first thing i do when i want to see a music video (used to be turn on MTV, but they don't have music anymore) is google the name, which gives me a youtube video within the first 3 links. 5th is the highest i've seen so far. why google? it's my homepage. saves me 3 seconds tops, i know, but that's convenience for ya.


RE: I wish I was the person
By Nik00117 on 9/27/2008 2:26:31 AM , Rating: 1
See they don't think that way. They think "O look youtube has 2.6 billion viewers on this video we can charge them!" they forget that the 2.6 billion views came out because the shit was FREE!!!!!!!!!!!!!!

Music industry needst o understand that in times like today we don't think about buying videos or music we just download em' and watch em' and thats that simple.


RE: I wish I was the person
By hydmoghul on 9/29/2008 2:59:10 AM , Rating: 2
Anyone want to bet that their videos will anyway end up in youtube?


RE: I wish I was the person
By audiomaniaca on 9/27/2008 3:04:13 AM , Rating: 2
I don't think their idea will work, specially with the stocks going down and things like that. The solution would be an open-source system, that could integrate all parties involved in the music business, but this is something Apple wouldn't support, simply because they're tied to AT&T.

Anyways.


If...
By austinag on 9/26/2008 3:21:29 PM , Rating: 3
They post them with a decent frame rate,
good resolution,
use channels to group content,
stream constantly rather than stopping after each video,
enable preloading,
don't apply primetime TV censorship rules,
and have ads to the side rather than making people sit through ads between content.

It might be popular.




RE: If...
By Lazarus Dark on 9/26/2008 6:39:55 PM , Rating: 2
Maybe... then again I've already dl'd all the music videos for artists I like, I don't know how many Gigs worth. I use playlists to make my own MTV for background music when friends are over. They were right, there is a market, but I think it's a little late. I've already got all the vids I want. But then, there's not many good music videos made anymore these days. Most of mine are from the 80's and 90's (metal/grunge)


RE: If...
By gt1911 on 9/26/2008 7:09:36 PM , Rating: 2
I'm the same. I've downloaded the music videos that I like (and can find). The problem is that the quality varies significantly.

If Universal wants to go further than just a youtube type setup and offer music videos for a price, say twice the price of just the mp3, I would happily pay. Particularly if they offered them in HD.


RE: If...
By cplusplus on 9/27/2008 12:30:14 AM , Rating: 2
I just have to ask if you know that iTunes does offer music videos for $1.99?

(I know DRM sucks and all that, but they're there)


RE: If...
By gt1911 on 9/27/2008 7:42:53 PM , Rating: 2
Yep, I was aware of that. Unfortunately I am stuck in the 80's and 90's when it comes to my taste in music (and music videos) and they only have a very limited selection.

Not their fault, of course. They're going for the what is going to be popular.


"We’re Apple. We don’t wear suits. We don’t even own suits." -- Apple CEO Steve Jobs

Related Articles













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki