The recent announcement by You Tube and Universal Music Group (UMG) brings about a high level partnership between the media and the technology industry. Although details are sketchy on exactly how the product christened Vevo will operate, official statements do mention an independent portal for exclusive high quality music videos and a channel on You Tube via a special embedded Vevo branded player.

The narrowing down to focus on a specific genre in the market could insinuate success but examples can be taken with other web video services which have a tendency to underperform. What Google and Vivendi, the primary players behind this particular deal need to realise is that one cannot have a tweaked iTunes like kind of a solution with video. One the dynamics are different and most importantly web videos thrive in the viral obscurities and peculiarities of social networks.

What You Tube has without a shadow of doubt is users. The audience is vast which clearly indicates that You Tube is a great product. What Google has failed to achieve is translating this audience into cash via advertising or some other business model. The audience to revenue ratio is still below expectations. So probably bringing a Hulu like product into the game might shake things up.

To be honest what You Tube really needs is an enterprise product. Yes they do have some sort agreements with content providers and creators such as media houses, celebrities e.t.c, however its a dismal offering comparing to what others might provide e.g Brightcove, which functionality wise is perhaps the best video on demand service offering that gives users so much control and real time feedback via a comprehensive analytics engine.
Content providers can certainly take advantage of You Tube’s technology and social network, what they do not need however is to be restricted by You Tube’s modus operandi, which may work well for the average Joe Bloggs posted viral video.

The ultimate answer is for You Tube to have an enterprise version that opens up its network and technology to content providers who may have elements of synergy with what You Tube has or could be able to offer. That way the network will self organise into genres that would cover both fat tails and the more widely popular offerings. Financially it would bring in added revenue for subscription into enterprise services and profit sharing with content providers on advertising that would piggy back on their content.


  • BROWSE / IN brightcove enterprise video Google Hulu umg vevo video on demand vivendi you tube Enterprise
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