Google and Universal Music Group Team Up
Google' s You Tube and the Universal Music Group, the world’s largest music label, are in advanced discussions over a licensing agreement that could lead to the creation of a premium site for music videos, according a person briefed on the talks. The discussions remain fluid and the terms of the agreement, which could not be learned, are still being negotiated. A final deal could still be weeks away, and its terms may be different from those being discussed currently, the person said.
The proposed agreement represent the latest effort by YouTube, the online video service, to attract premium content that might lure higher-priced advertisements. Music videos are among the most popular content on YouTube, but they have failed to produce significant revenue for YouTube or the music labels.
YouTube declined to comment on the talks, but in an e-mail statement it said: “We are always working with our partners to find creative ways to connect music, musicians and fans.”
A spokesman for Universal Music Group, which is owned by Vivendi, could not be reached for comment.
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