Music Ally

The Spotify model of seeing mobile as a premium feature for paying customers is catching. Now online TV service Hulu is apparently plotting a move to Apple’s iPad tablet – but only allowing paying subscribers to use the app.

The site is currently only ad-supported, with no option to pay, so iPad would be the launchpad for its subscription ambitions. “It’s a tricky balancing act that we’re trying to fine-tune before we go out,” a source tells All Things Digital. “Everyone’s concerned about making a strong offering at a good price, and not undercutting the existing business.”

Hulu has been signing more deals with the music industry in recent times, adding music videos to its staple TV shows. However, it wouldn’t be the only service offering full-screen music videos for Apple’s tablet – YouTube is already confirmed as one of the launch applications for the device.

Have we found an online video advertising format that truly works? Digital agency VivaKi has published results from The Pool, a survey of 29 different online long-form video ad formats, and concludes that the best is ‘The Ad Selector’, where users choose what video ad to watch before streaming content.

The idea was invented by online TV portal Hulu. The study suggests that The Ad Selector ads deliver on average click-through rates 106% higher than standard pre-roll ads, while online ad-recall scores were 290% higher.

However, the next phase of the research will be more relevant for the music industry, since it will focus on short-form video.

Warner Music Group has yet to ink a deal with music videos portal Vevo, despite it being backed by all three of its major label rivals. However, WMG has signed up with online TV service Hulu, with plans to provide videos, interviews, concert footage and behind-the-scenes vids.

Muse is the first WMG artist to get the Hulu treatment, with its own artist page on the service offering a range of content. In the coming weeks, Jason Mraz and Paramore will join them. WMG is the second major label to sign a deal with Hulu following EMI, as the site ramps up its music ambitions. It started life as a joint venture between several US broadcasters.

“We’re pleased to be working with Hulu as we expand our premium ad-supported video strategy to provide our artists with a customised and flexible approach to marketing and monetising their music,” says WMG’s EVP of digital strategy and business development Michael Nash.

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EMI has become the first major label group to make concerts and music videos available on US licensed video service Hulu. The deal will kick off by featuring the entire repertoire of Norah Jones music videos including exclusive content from her new album The Fall. Videos from Virgin, Capital and Blue Note among other EMI labels will be available on Hulu, the streaming video site set up by US studios NBC, Fox and ABC.

US online video site Hulu has so far focused on TV shows and movies, but a report on Bloomberg claims the company is now in talks with all four major labels to add music videos to its catalogue.

The article suggests the labels have been in discussions with Hulu since late last year, but that a sticking point – stop us if you’ve heard this one before – is how to split advertising revenue. The news follows the recent announcement of VEVO, a premium music videos site being launched by UMG and powered by Google.

The same Bloomberg piece suggests that the other major labels may be offered a stake in VEVO to persuade them to sign up. And indies? They don’t seem to be on the radar of any of these deals, although that may be more about journalists focusing on the Big Four when reporting them.

Speculation surrounds Warner Music Group’s decision to pull its music videos from YouTube after a breakdown in licensing negotiations between the two companies. Here’s WMG’s statement on the situation:

“We are working actively to find a resolution with YouTube that would enable the return of our artists’ content to the site. Until then, we simply cannot accept terms that fail to appropriately and fairly compensate recording artists, songwriters, labels and publishers for the value they provide.”

And here’s YouTube’s:

“Despite our constant efforts, it isn’t always possible to maintain these innovative agreements. Sometimes, if we can’t reach acceptable business terms, we must part ways with successful partners. For example, you may notice videos that contain music owned by Warner Music Group being blocked from the site…”

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