Can ad-supported Vevo save the music industry?
As writers Ronald Grover and Adam Satarino report at Bloomberg.com note, quoting "Howard Bass, a senior partner at Ernst & Young LLP in New York who advises entertainment companies. ‘The question is how quickly the music industry can adopt a new digital strategy.’ The number of music enthusiasts using Apple Inc.’s iTunes, Amazon.com Inc. and other digital music stores has leveled off at about 40 million people, market researcher NPD Group Inc. reports."
According to the article, "The major labels are scrambling to come up with alternatives. The industry’s leaders, Universal Music Group and Sony Music Entertainment, are among the backers of Vevo, an ad- supported streaming website. No. 3 Warner Music Group Corp. wants new acts to sign what the industry calls “360 deals,” which generate revenue from music, merchandise and concert sales."
The article also says that subscription services such as Rhapsody, which carry licensed music, "are far less profitable than sales of individual tracks."