In an new interview with the Los Angeles Times, Sony Music Entertainment CEO Doug Morris tells Google that if the Web giant doesn't offer a better royalty rate for music videos, he will end VEVO's partnership with YouTube. The future of VEVO has been in question in recent months, as the music video service has reportedly been seeking out other potential partners if it does not renew its deal with Google/YouTube.
"Google is charging us a lot of money to put our videos on their platform, and we would like them to reduce their fees," Morris told the Times. "If not, there are at least three other companies who want to take our videos." According to recent reports, Facebook, Apple, Microsoft and Amazon are among VEVO's potential suitors.
Morris helped co-found VEVO when he was CEO at Universal Music Group and the service is a joint venture between UMG, Sony and Abu Dhabi Media Co.
He told the Times that "YouTube has been good partners. They're just extracting too much money for the enterprise to work properly. The videos are expensive to produce. And there are many mouths to feed on our end. You have to pay the artist, the record companies, the publishers." Morris adds that Google's culture has changed over the years and now it "is a different company. It's a slow process. And they stand a chance of losing the deal. Are they going to make us a deal we can live with? Or will they live without the music?"
In the interview with the Times, Morris discusses the origins of VEVO and the economics of the music video world. You can read the complete interview here.