UMG inks deal with video startup Vessel

Universal Music Group has today announced an agreement with the January-launched video-streaming startup Vessel.​

Vessel customers subscribed to its paid tier will have exclusive early access to some videos from the label’s rostered acts. 

Vessel launched in late January to take on YouTube; for US$3 a month, subscribers have early, exclusive access to online videos, and artists who give Vessel access to their clips share in 20-times more revenue than YouTube through ads and subscription fees. Its free version will also distribute music videos from the Universal-owned Vevo and Warner Music Group. 

Vessel can already count many of YouTube’s digital networks among its signees, including Tastemade, Epic Meal Time, Nerdist Industries, Unbox Therapy and Machinima. Following the temporary exclusive, which runs for a period of at least 72 hours, Vessel’s partners can then distribute their content via other platforms.

The service was created by Jason Kilar, the former head of ad-supported TV and film streaming service Hulu, and is still in beta testing. Kilar and Universal Music Group Chairman Lucian Grainge announced the agreement at Re/Code’s Code/Media conference in California today.

"Vessel represents the latest business model innovation for premium short-form content and we’re pleased to extend our industry-leading track record of empowering entrepreneurs who are growing the playing field for new content services,” said Grainge in a statement.  

Kilar added: “We are excited to work with Lucian and everyone at Universal. Their team has a real gift for finding talented new voices and helping them reach a wider audience through new platforms like Vessel. It’s no secret that consumers love music videos. We look forward to giving Universal artists an amazing new home on Vessel.”