Andre Yoskowitz
12 Jul 2012 21:28
Sony Music head Doug Morris has said that YouTube needs to lower the rates it charges VEVO or the companies may be headed for a divorce.
YouTube, owned by Google, charges a significant sum to host the music video site's content.
VEVO is a joint venture between UMG and Sony but they have content from EMI, as well. Warner is the big holdout from the Big 4 labels.
The company sells advertising on official music videos, and pays Google a technology fee from their revenue.
Morris says the rates are too high, however, considering how much traffic VEVO creates for YouTube. Morris also says YouTube rivals are actively looking for a VEVO contract.
Concludes Morris: "Google is charging us a lot of money to put our videos on their platform, and we would like them to reduce their fees. If not, there are at least three other companies who want to take our videos."