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Universal Music Group teases music videos on Vessel

Universal Music Group is premiering a set of music videos on mobile-optimized online platform Vessel, which requires a paid subscription, before making the content available on free, ad-supported services in a move to reach more consumers.

Some experts believe this move could cause a threat toward YouTube, a site that hosts tons of music videos. Nonetheless, the collaboration promotes both sources, by giving Vessel exposure to the industry, which is becoming more mobile everyday, and Universal Music Group to see how profitable its content is.

"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 Lucian Grainge, chairman and CEO of Universal Music Group. "The Vessel team recognizes the substantial value of the music videos created by our world class roster of artists and have built a platform that promises fans a first-rate experience while providing artists and labels new ways to increase the monetization of their creative work."

Double promotion
Vessel subscribers receive at least 72 hours of exclusive access to short-form content on mobile devices and the Web for $2.99 per month. 

Vessel is a premium video service that gives consumers early access to short-form videos from their favorite artists. The service offers these videos through a curated and ?creator-first? platform that is accessible via mobile apps for iPad and iPhone and via Vessel.com.

During the early access period, videos on Vessel can earn a multiple of 20-times more per view compared with free, ad-supported online video services, prompting Universal Music Group?s move to give consumers an early preview.

After the exclusive time period, videos posted on Vessel become available on general ad-supported online services, including Vessel's free, ad-supported offering.

The specific artist videos from Universal Music Group's labels that will be featured on Vessel's paid tier will be revealed in the coming weeks. 

Jason Kilar and Richard Tom, the founding CEO and former CTO of Hulu, founded Vessel, a San Francisco-based startup, in 2013. 

Music to our ears
The music and entertainment industry can easily leverage mobile to reach more consumers.

For example, Coca-Cola Freestyle, the branded solution that dispenses more than 100 different drink choices in participating restaurants, has recently joined forces with Lady Antebellum to give fans the chance to win backstage passes at one of the country music group's shows, an effort that relies on a collaborative mobile application to tell fans where the dispensers are located.

When fans visit participating restaurants with Coca-Cola Freestyle now through March 31, they can choose from three Lady Antebellum mixes for a chance to ?mix it up backstage? and ?Own the Night? with the country group. Channeling a multichannel approach, physical participation will likely be driven by mobile capabilities, as customers will use the app to better their chances of winning the sweepstakes (see story).

Also, IHeartRadio?s surpassing 60 million registered users points to how the digital music and live streaming radio service is listening to mobile-empowered users, seamlessly integrating live and digital events to build brand engagement.

With the milestone, on top of its reaching nearly 90 million unique visitors across its iHeartRadio Network, iHeart is positioned as a top streaming radio application, one of the most used music apps and one of the top free downloads in app stores across all categories. IHeartRadio?s growth comes on the heels of its expanded availability across more than a dozen additional devices, announced at the 2015 Consumer Electronics Show, including first-time integrations with Sony, LG and others spanning automotive, in-home entertainment and gaming (see story).

"We are excited to work with Lucian and everyone at Universal,? said Jason Kilar, CEO and co-founder of Vessel. ?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,? he said. ?We look forward to giving Universal artists an amazing new home on Vessel."

Final Take
Caitlyn Bohannon is an editorial assistant on Mobile Marketer, New York