The big record companies are upset that youtube is so popular and has more friends then them. They want to be just as cool. Advertisers aren't paying youtube too much money despite its popularity. YouTube is growing like crazy and has over 100 million users in the U.S. alone according to comScore. The more friends you have visiting you on the internet the more money you can make from advertisers. The musicians that the record labels own can currently be watched on youtube for free. This upsets the record labels and isn't fair to the musicians. Most of what you watch now on youtube in terms of music, television and movies is copyright infringement and the record companies are fighting back.
Google's YouTube and Universal Music Group, the world's largest music company, are teaming together to form a music video website that will attract bigger advertisers. Youtube will share in advertising revenues so they are happy to play. This new website will be called Vevo and is expected to launch in a few months. It will contain higher quality videos most likely in HD as opposed to the ghetto grainy and often user generated videos that you now see on YouTube. That's good news for the music listeners. The idea is for Vevo to attract larger corporate advertisers that will pay more money to advertise over, under and around legitimate videos. Billy's illegally uploaded video of Boom Boom Pow by The Black Eyed Peas isn't attracting the advertisers that pay a whole lot of money.
This Vevo invention can be compared to Hulu, which is an online video service owned by NBC Universal and News Corp. Hulu features popular TV shows and some movies, and has been able to sell advertising to bigger corporate brands than YouTube. The more legitimate the content the higher advertisers will pay. Vevo will try to copy this model and make that money.
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