YouTube and Universal Music Decide to Synergize

Vevo, a Web site birthed by mother YouTube and father Universal Music Group, is set to have videos from artists on UMG-owned labels like Def Jam, Mercury Records, Decca and Verve, reports Clikz.com.

According to TheWrap, the deal is quite simple. YouTube will host the videos, and UMG will supply them, and the revenue from advertisements will be split accordingly.

Many industry critics will compare this new site to Hulu, reports UK Reuters. However, it is important to remember the distinct difference between the two. Hulu is redistributing a content that is chopped up with advertisements on every channel already, where Vevo is not. They deal with a more specific type of videos, and making ads not an issue for viewers will be a difficult task.

Although some see this as an advancement in the relationship between labels and the ever growing Internet, most think this is just another shot in the dark for a dying breed known as the recording industry.

The site is expected to launch in the next few months.