Universal Music Group (UMG) has signed a deal with premium online video service Vessel that will see selected UMG videos premiered for an exclusive windowed period before they appear on the likes of Vevo and YouTube.
The news follows a similar deal struck by Warner Music with Vessel. Unlike Warner, however, Universal licenses its content – and is an equity owner – in ad-supported music video platform Vevo, which continues to look for a buyer.
Vessel subscribers will now receive at least 72 hours of exclusive access to certain new UMG content on mobile devices and the Web for the price of $2.99 a month.
Lucian Grainge, Chairman and Chief Executive Officer of Universal Music Group, and Jason Kilar, CEO and co-founder of Vessel, made the announcement yesterday in Dana Point, California, at the Code/Media conference hosted by Re/Code.
“Vessel represents the latest business model innovation for premium short-form content and we’re pleased to extend our industry-leading track record of empowering entrepreneurs who are growing the playing field for new content services,” Grainge said.
“Jason and his team at Vessel recognise the substantial value of the music videos creates by our roster of artists.”
“Jason and his team recognise the substantial value of the music videos created by our world class roster of artists and have built a platform that promises fans a first-rate experience while providing artists and labels new ways to increase the monetisation of their creative work.”
“We are excited to work with Lucian and everyone at Universal. Their team has a real gift for finding talented new voices and helping them reach a wider audience through new platforms like Vessel,” said Kilar. “It’s no secret that consumers love music videos. We look forward to giving Universal artists an amazing new home on Vessel.”
The specific artist videos from UMG’s labels that will be featured on Vessel’s paid tier will be revealed in the coming weeks.
During the early access period, videos on Vessel can earn a multiple of 20-times more per-view compared with free, ad-supported online video services.
After the exclusive time period, videos posted on Vessel become available on general ad-supported online services, including Vessel’s free, ad-supported offering.Music Business Worldwide