TV was not the first digital transition. It had a predecessor to teach it many valuable lessons. Do you remember vinyl records? What about Compact Discs? Does anyone even use those today? If the discussions about DVD dying or BD becoming supplanted by online distribution before it has even celebrated its format war victory, it may be very familiar to some.
While it is too early to tell if history will repeat itself , it can be said that the student may have become the master in terms of an online monetization model.
The website Vevo is the music industry’s answer to Hulu, the popular U.S.-based online service backed by NBC Universal, News Corp (NWSA.O) and Walt Disney Co (DIS.N).
While it may be strange to see the names behind Vevo not only joining a group such as this, but also following someone else’s lead, it speaks volumes to what these companies are going through. UMG for example is the largest music company and most watched channel on YouTube. Yet, they see a need to not only drive their online revenue in new ways, but retain a larger portion of what their video is generating. Watching the growth of Hulu, they have a trailblazer to follow and have convinced some of the other music publishers to join them.
This has great crossover potential for every stakeholder and in many directions:
- web programming syndicated to broadcast, mobile, etc.
- serialized videos centered around not only one artist, but a mixed bag of Vevo artists and primetime acting talent
- the usual ringtone, wallpaper, blog theme tie-ins
ABC has already seen success with tying in new musical artist to season premiers of established shows. This would appear to expose the artist more than the show, but now, depending on the impact of Vevo, the music industry could return the favor. If nothing else, it means higher quality online video. And legal to boot. Viva, Vevo!