YouTube music has hit the music world with a bang. For a long time the music fraternity had been grappling with how to build a formidable online video music hub that would be efficient in content storage and advertising. YouTube became the answer! YouTube’s popularity has grown exponentially over the time.
You probably remember when youtube was dominated by private bloggers. This certainly isn’t the case now.
YouTube Serves a Wide Variety of Media Industries
The YouTube hub has become an attraction for all and sundry. In fact, YouTube is currently one of the preferred choices for relaying news that contains video streams. It is not uncommon to hear leading news channels make reference to YouTube for the videos they use on TV in their broadcasts around the world. YouTube music is equally a world force right now.
Ask any savvy music enthusiast where they would go for their latest music videos, and their answer will be… Yes you guessed it right, YouTube is the go-to video hub that you go to for the latest quality videos. YouTube music is popular because it gives what is arguably the best quality in video streaming.
A Partnership between YouTube and Universal Music
The world’s leading video streaming online site is said to be in discussion with Universal Music, another giant in the music industry, in which the former will be tasked with building a new video music online hub. This is likely to boost the demand for YouTube music even further. This move has been viewed by many analysts as a way of driving the online music video market to an even greater market share position.
However, observers are quick to note that Universal music is also seeking to carve a greater profit niche for itself by embracing YouTube. The growth in YouTube music over the past few years has been breathtaking. Few online sites experience the success rate YouTube has enjoyed lately.
Under the agreement, it is expected that you tube will develop advertising strategies and a support platform to distribute Universal’s music video content to other sites on the internet. It is also expected that apart from a rise in sales of YouTube music, the advertising segment will go a notch higher owing to the premium content that they will have exclusive rights to distribute. Caution must be taken to avoid too much excitement about this partnership because the negotiations are ongoing.
It Is a New Strategy to Boost Returns
Partnership between YouTube and Universal is not an entirely new development. YouTube has had a license to distribute and advertise universal music for a while now. The new arrangement is set to expand sales horizons by bolstering the content available on YouTube and opening up new online markets. It has also been rumored that the old arrangement has not been very successful.
The older deal allowed YouTube to use universal music content to advertise products placed next to the videos. Universal Music allowed this in exchange for a share of revenue the sales generated from the ads. However, Sources say that the revenue generated from this effort has not been significant. Therefore, Universal Music is trying out new ways of ensuring that their content is not used in vain by YouTube music.