Sony Music joins Vevo

Sony Music announced it will take an equity stake in Vevo, the online music video destination Universal Music Group and YouTube are developing. The addition of Sony to the Vevo lineup bodes well for the site once it is launched, and it also raises the possibility that the remaining two major music labels, EMI and Warner Music Group, will join Vevo. Sony Music reportedly received an equity stake in Vevo for its participation.

Vevo hopes to duplicate the success that Hulu has had developing audience and revenue for premium online video content. Music videos are one of the most popular draws on YouTube, but YouTube and music labels have had a number of squabbles about revenue share and promotion. So Vevo may stand as a good fit for both YouTube and the labels, as the opportunity to monetize the content more effectively through a dedicated destination site for music videos should quiet the revenue debate for a time. The announcement of Sony's participation in Vevo may also have interesting implications for Hulu's reported talks with music labels to create a Vevo rival.

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