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YouTube Making Universal Music a Bundle

By - Source: Tom's Guide | B 1 comment

Everyone knows how popular YouTube is but over the last few months there’s been more and more talk of how the video sharing site isn’t the cash cow it was expected to be for Google. However, according to CNet, Universal Music is making a very tidy sum with its YouTube channel.

The company has a deal with YouTube that sees Universal share ad revenue from videos posted on the site as well as a share of revenue from videos posted by users on the site. The two are making each other in quite a bit of money and it looks like they’re both pretty happy with the arrangement.

"YouTube is the ideal place for labels to promote music and for fans to discover new artists and old favorites," Chris Maxcy, YouTube’s partner development director told CNet. "We’re committed to being a good partner to music labels and are pleased they’re having success on the site."

Universal was just as enthusiastic. "(YouTube) is not like radio, where it’s just promotional," said Caraeff, head of Universal’s digital group. "It’s a revenue stream, a commercial business. It’s growing tremendously. It’s up almost 80 percent for us year-over-year in the U.S. in terms of our revenue from this category."

Last month talk began to circulate to the effect of Hulu outdoing YouTube in ad revenue by next year. While both sites now offer streaming of professional content in one way, shape or form, the major difference between Hulu and YouTube is that the former only deals with professional content. Hulu offers free, ad-supported streaming video of TV shows and movies from various different networks and studios including NBC and FOX, and although Hulu videos are currently offered only to users in the United States, it seems analysts are keeping an eye on Hulu.

Check out the full Universal Music story on CNet.

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