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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared Democrats reach deal on health bill 08 Dec 2009 U.S. airport screening secrets posted online 12:41am EST For North Korea, giving up atomic weapons is a risk 08 Dec 2009 U.S. already $292 bln in the red this year - CBO 04 Dec 2009 Police suspected Woods drank alcohol on day of crash 07 Dec 2009 U.S. already $292 bln in the red this year - CBO 04 Dec 2009 U.S. airport screening secrets posted online 12:41am EST Music labels bet Vevo.com is next MTV 08 Dec 2009 Democrats reach deal on health bill 08 Dec 2009 Iran says will show no mercy to opposition protesters 08 Dec 2009 Music labels bet Vevo.com is next MTV Yinka Adegoke NEW YORK Tue Dec 8, 2009 9:39pm EST Related News Apple acquires music service Lala Sat, Dec 5 2009 MySpace hopes high as launches music site in UK Thu, Dec 3 2009 Warner Music posts surprise loss, shares tumble Tue, Nov 24 2009 MTV, RealNetworks to rework Rhapsody JV: filing Thu, Nov 19 2009 Glam, kitsch, rock: Adam Lambert is out to entertain Tue, Nov 17 2009 NEW YORK (Reuters) - In a grainy black and white Web video, similar to footage from an in-store security camera, you can make out the muscular frame of rapper 50 Cent, smashing dozens of TV sets with a baseball bat. Entertainment | Technology | Music | Media None too subtle in its message, the clip is part of a advertising blitz by Vivendi's Universal Music Group and Sony Music Entertainment, two music giants hoping that their new website, Vevo.com, will finally put to rest any idea that TV is a place for top flight videos. Launched on Tuesday, Vevo offers music from both Universal and Sony, as well as EMI Music, and contains programing from CBS radio stations and Last.fm, both owned by CBS Corp. In all about 30,000 videos are available. The idea is to create an MTV for the digital age, a music site where all the latest and archived videos can be found. It's a business model similar to that of Hulu, the popular TV and movie site. Vevo's debut comes as music companies are losing revenue and profits at a rapid tick due to the combined impact of falling sales of CDs, online piracy and evolving methods fans discover new music. Moreover, MTV Networks, owned by Viacom Inc, is no longer considered a major outlet for playing music videos, and while Google Inc's YouTube has been an important music discovery tool for the record companies, it has failed to attract premium advertising dollars. But Vevo has landed just the sort of blue-chip brands that have shied away from YouTube and its the random user-generated clips. That's largely because of the high production value of the videos, and the top flight artists they feature. Indeed, Vevo launched with the support of nearly 20 new advertising partnerships, including names like Colgate-Palmolive Co., MasterCard Inc., McDonald's Corp., and AT&T Inc. These advertisers will pay a near premium rate of around $20 to $45 for every 1,000-page views, Vevo Chief Executive Rio Caraeff said in an interview. "We're offering advertisers opportunities that they can't buy off the rack," said Caraeff, who has hired more than two dozen executives to sell ads. CHANGING THEIR TUNE Across the industry, music companies and their technology partners are increasingly banking on the idea that fans are prepared to either pay for access to a site or will tolerate targeted advertising in exchange for their favorite songs. Owning music, either in a physical format or even as a digital file, is also no longer as important as it once was, the thinking goes. One indication of this came last week when Apple Inc's iTunes Music Store bought Lala, a digital music service that streams songs on a variety of sites. The move surprised many long-time Apple watchers because iTunes is easily the dominant online music retailer, controlling about 70 percent of the U.S. market. Apple is also not known for buying technology companies, preferring instead to painstakingly develop its own software to seamlessly fit within the Apple ecosystem. "Apple's music strategy is always primarily about delivering a differentiated, high-quality music experience on its devices," said Mark Mulligan, an analyst at Forrester Research. "But social music and other streaming services have shifted the momentum of digital music away from downloads." What has changed for iTunes is similar to the thinking behind Vevo: Modern music fans expect to have access to their songs on demand. Services like Europe-based Spotify, News Corp's MySpace Music and YouTube have done well with fans because of the ease with which they can find their favorite songs. The challenge is making the all-you-can-hear model work. Spotify delayed its launch in the United States till next year because it is still working out agreements with music publishers. "It's like having your entire CD collection and that of all your friends with you wherever you are," said Daniel Ek, founder of Spotify. "That being said, music should be about choice - there will be some who will continue to prefer ownership over access for a time yet." (Reporting by Yinka Adegoke; Editing by Paul Thomasch, Leslie Gevirtz) Entertainment Technology Music Media Add a Comment More from Reuters Democrats reach deal on health bill WASHINGTON (Reuters) - Senate Democratic healthcare negotiators said they agreed on Tuesday to replace a government-run insurance option with a scaled-back non-profit plan and would seek cost estimates on the deal. Gates: pieces coming together for Afghan success U.S. bailout fund left many problems unsolved: watchdog Is there a doctor in the corporation? Maybe soon U.S. airport screening secrets posted online Nikkei drops on yen, debt worry; Suzuki advances » More Top News Postcards to Copenhagen: Wish we weren't here Mount Kilimanjaro's melting snow cap is one of many things forever altered by climate change. Here's a snapshot of a world dealing with environmental destruction. Full Article 2009 to be fifth warmest year on record Who's to blame if climate deal fails? Climate conference witness: Scenes of a "slaughterhouse" War is just about the only story to tell in Somalia. But when one reporter tried to cover an event reflecting positive change, violence reared its ugly head again. Full Article Who are Somalia's al Shabaab rebels? Factbox: Conflict in Somalia World © Copyright 2009 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal ECVJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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