Vevo MTV.com Videos Veto : Blocks Lady Gaga, Justin Bieber Clips – Don’t expect to see any Lady Gaga, Justin Bieber, or other popular artists music videos showing up on MTV.com anytime soon. Vevo pulled the plug on the destination after both parties failed to reach a deal that would allow MTV.com to show the music videos that are broadcast over the Vevo service. Vevo is only eight months old, and is owned by Universal Music Group, who has a number of artists under their labels that use the service to broadcast their music videos around the web. It is a video player that was designed to be imbedded into third party sites.
Viewers get a watch for free, but the sites make money by selling advertisements alongside the videos. It is a new business model that has worked very well in the music industry so far. Under the old deal, MTV handled the ad sales and shared their revenue with Universal. Now, Vevo wants to sell the ads and share the advertising revenue with MTV under a new deal that would give Vevo more control over the advertisements that are shown along with their videos and MTV less control over the advertisements that will be shown on their web site.
“MTV has been unwilling to negotiate a fair syndication deal with Vevo to carry our artists’ videos and consequently our videos will not be shown on their online properties,” a Universal spokesman said.
It will be interesting to see how this works itself out. Vevo broadcasts millions of plays each and every day. It is unlikely that they will not be able to come to some sort of agreement in the future.