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Vevo seeks move from Google's YouTube with reported Apple, Samsung TV deals

BusinessNews
by Stephanie Mlot, 22 Aug 2013News
Vevo seeks move from Google's YouTube with reported Apple, Samsung TV deals

Music video service Vevo has inked deals to host a new channel of 24-hour original programming available via Apple TV set-top boxes and Samsung television sets, according to the Wall Street Journal.

The attempt to recreate the MTV days of yore could begin as early as this week, the Journal reported, citing people familiar with the matter. Samsung, meanwhile, is likely weeks away from an announcement.

With its own channel, Vevo may finally be able to break free of YouTube and market its own content through Vevo.com and mobile applications; the move would allow the company to keep all ad revenue, instead of the smaller percentage left over once Google takes its cut.

Pulling users' attention away from video mecca YouTube may be tough, especially since the site accounts for more than two-thirds of Vevo's US video streams, the Journal pointed out. The paper added that deals with Samsung and Apple will also help Vevo sell ads made specifically for television — bigger medium equals bigger budgets.

And while this plan may look a lot like the resurrection of MTV, it actually marks a big shift in marketing strategies. In the music television heyday, artists earned none of the profits from ads that ran with their videos, which were intended strictly as a promotional tool to drive interest in albums. But in the MP3 age, record labels are getting more creative about how they make money.

Vevo has already been testing its TV options — the company in March launched the online "Vevo TV" channel, which features blocks of videos and original shows, but offers viewers no choice in what they see.

Early last month, meanwhile, YouTube renewed its agreement to retain Vevo content in a deal estimated at $40 million to $50 million (£26 million to £33 million), giving Google a roughly seven per cent stake in Vevo. The music service reportedly plans to use the money to expand its international presence and boost original music-related content.

Vevo, Apple, and Samsung did not immediately respond to a request for comment.

Image credit: Flickr (MediaPost Communications)

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