Van Halen News Desk is reporting that Bono has managed to broker a deal that merges Universal Music Group (the largest record distribution outfit on the planet) with YouTube.
The channel, to be called Vevo, will debut later in 2009 and will feature content provided by Universal. The joint venture, apparently derived by Bono during a dinner with UMG’s CEO Doug Morris, is expected to produce revenue through outside advertisements, similar to the commercials seen on sites such as Hulu that viewers must endure before seeing the content they are seeking.
The new channel will be wholly owned by UMG, although both companies will share start up costs. The venture has been deemed as necessary by UMG, as album sales thus far in 2009 are down 45 percent from 2000, according to Nielsen SoundScan.
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