Even though many in music hate to
acknowledge it, YouTube really runs the
music business these days. Multiple studies have found
that most discovery of new music online is the result
of YouTube, and that the percentage of use increases
as the age demographic gets younger.
Guest Post by Bobby Owsinski on
Music 3.0 Blog
For that reason, YouTube is a big target for new and existing
music services alike. Every entrepreneur wants a piece of those
total eyeballs. The problem is that many focus on the wrong
part of the equation in an effort to get a competitive edge.
Vessel is a new video network
started by two
former Hulu executives and backed
by Amazon’s Jeff Bezos to the
reported tune of $75 million. The service hopes to lure users
away from YouTube (especially millennials) by giving
its subscribers exclusive access to videos not found
anywhere else online for a window of up to 72 hours in return
for a monthly fee of $3.
The company seems to be
basing its success on a strategy of attracting high quality
creators by offering them a better deal than they’re currently
getting anywhere else. This includes 60% of the subscription
fee and up to 70% of the advertising revenue for a video that’s
released on Vessel before another service.