For years, MTV snubbed its nose at record companies, refusing to share the profits it gleaned from music videos of their artists. Now a new video provider is turning the tables as it is owned by all bar one of the major music firms, and the last may yet sign up.
If any of the insomniacs who caught MTV's inaugural broadcast a minute after midnight on August 1, 1981, doubted what the cable channel was up to, they only had to wait for the chorus of the first song for the answer: "Video killed the radio star," sang those one-hit wonders, The Buggles.
A bit like MTV itself, it was a sugary pop hook and a ruthless business plan rolled into one.
From the beginning, MTV set out to fundamentally change media. It did not invent the music video but it figured out how to make money from a medium that record companies had previous written off as a promotional expense.
In the process, it changed the way stars were made and records were sold. The fans loved it but the record companies were less convinced. After all, this upstart station was making a healthy profit from selling advertising against their promotional material, but refusing to share this revenue stream.
Even more distressingly from the labels' point of view, MTV at its height was the very gatekeeper of cool, giving a single company vast power over the sales of an entire industry.
This week, 28 years and one internet revolution later, the labels may finally have had their revenge. At a star-studded launch party in downtown Manhattan on Tuesday night, a venture was launched that, like the original MTV, aims to profit from advertising sold alongside music videos. This time around, the labels own it.
Vevo, a partnership between Universal Music Group, Sony Music Entertainment and the Abu Dhabi Media Company, the owner of The National, was dreamed up by Doug Morris, the chairman and chief executive of Universal.
Mr Morris recently said in an interview with CNET that he saw a Universal artist's video posted on Yahoo a few years ago, where it was earning advertising revenue for the search site but not a penny for the record company.
He was rebuffed when he called Yahoo's chief executive to complain, so Universal removed their videos from Yahoo and AOL.
The companies eventually worked out a profit-sharing deal but the incident drove home the point that music videos have value that can be used to generate profit online.
"At the moment, online video advertising attracts 3 per cent of online advertising, and by 2013 it's supposed to grow to 11 per cent," says Ricky Ghai, the executive director of the digital media group at ADMC, which bought a stake in Vevo in October.
"That's really one of the key reasons as to why Vevo was born, to capitalise on this adspend."
MTV may have given up on music videos years ago in favour of reality programming, but the fans have not. Music videos make up 14 of the 25 most-watched clips of all time on YouTube, the Web's top video-streaming site.
But turning this popularity into profits is not as easy as it sounds. YouTube had been in search of better ways to do it, as many advertisers were wary of mixing their brand with the company's vast library of mostly user-generated content.
Vevo's breakthrough idea was to create a branded, stand-alone player, accessible through YouTube, that presented only high-quality, professionally made videos with higher resolution than the standard Web fare.
The site also plans to offer short documentaries and other films made by artists for fans to enhance the sense of an exclusive experience.
"It means that you can go to YouTube to search for your video, and when you find it, you are pushed to a Vevo premium space," Mr Ghai says.
"When you arrive there, it's legitimate content, licensed content, at a certain threshold, and because it's been regulated the advertisers are quite comfortable to create a relationship with the Vevo environment."
Major advertisers such as AT&T, McDonald's and MasterCard have already signed on.
This new revenue stream comes not a minute too soon for the music industry.
Record sales in the US have faced a steady decline for a decade, with a fall last year of 14 per cent, Neilsen Soundscan says.
While sales of digital tracks rose in that same period, their profit margin is so much thinner that these sales have not been making up for several years of shortfall.
The industry eliminated 5,000 jobs in the US between 2000 and 2007, according to Rolling Stone, despite the overall economy being on an upswing. If Vevo works it will be a major shift for the music industry, which until now did not directly concern itself with the business of selling advertising.
The venture's closest ancestor is not from the music industry. Hulu, the commercial-supported website that streams popular television programmes from ABC, NBC, Fox and other networks, has widely been cited as the inspiration for Vevo; for its revenue model and the fact that it is owned by content proprietors.
Hulu is a joint venture of Comcast's NBC Universal, News Corp's Fox Entertainment Group, ABC, The Walt Disney Company and Providence Equity Partners, a private equity firm that holds a 10 per cent stake.
Vevo has been able to get a little more than half the music industry on board as equity partners, in Universal and Sony.
On the eve of the launch, EMI, the smallest of the majors, agreed to license its content to the venture. Dozens of independent labels have also signed on, leaving Warner Music Group the only outsider, although company officials say they are still in talks.
Vevo differs from Hulu in one important way. Two years after its launch, Hulu is still available only inside the US. In contrast, Vevo launched on Tuesday in the US and Canada, and from the beginning has expressed plans to roll out in other markets including Europe and, eventually, the Middle East.
Part of ADMC's deal in buying the stake was that its digital download service, Getmo, would hold the exclusive right to be the online cash register for music and other content bought through Vevo for a period after its launch in the region.
Although MTV started out as a broadcast to a few thousand cable subscribers in northern New Jersey, three decades later it is one of the most recognisable international media brands, with dozens of international native-language stations stretching from MTV Philippines to MTV Ukraine.
If Vevo does become the international phenomenon it has the potential to be, it may end up being the MTV of the 21st century.
@Email:khagey@thenational.ae
'Outclassed in Kuwait'
Taleb Alrefai,
HBKU Press
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
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NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
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Common OCD symptoms and how they manifest
Checking: the obsession or thoughts focus on some harm coming from things not being as they should, which usually centre around the theme of safety. For example, the obsession is “the building will burn down”, therefore the compulsion is checking that the oven is switched off.
Contamination: the obsession is focused on the presence of germs, dirt or harmful bacteria and how this will impact the person and/or their loved ones. For example, the obsession is “the floor is dirty; me and my family will get sick and die”, the compulsion is repetitive cleaning.
Orderliness: the obsession is a fear of sitting with uncomfortable feelings, or to prevent harm coming to oneself or others. Objectively there appears to be no logical link between the obsession and compulsion. For example,” I won’t feel right if the jars aren’t lined up” or “harm will come to my family if I don’t line up all the jars”, so the compulsion is therefore lining up the jars.
Intrusive thoughts: the intrusive thought is usually highly distressing and repetitive. Common examples may include thoughts of perpetrating violence towards others, harming others, or questions over one’s character or deeds, usually in conflict with the person’s true values. An example would be: “I think I might hurt my family”, which in turn leads to the compulsion of avoiding social gatherings.
Hoarding: the intrusive thought is the overvaluing of objects or possessions, while the compulsion is stashing or hoarding these items and refusing to let them go. For example, “this newspaper may come in useful one day”, therefore, the compulsion is hoarding newspapers instead of discarding them the next day.
Source: Dr Robert Chandler, clinical psychologist at Lighthouse Arabia
if you go
The flights
Emirates have direct flights from Dubai to Glasgow from Dh3,115. Alternatively, if you want to see a bit of Edinburgh first, then you can fly there direct with Etihad from Abu Dhabi.
The hotel
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Located in the heart of Mackintosh's Glasgow, the Dakota Deluxe is perhaps the most refined hotel anywhere in the city. Doubles from Dh850
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Events and tours
There are various Mackintosh specific events throughout 2018 – for more details and to see a map of his surviving designs see glasgowmackintosh.com
For walking tours focussing on the Glasgow Style, see the website of the Glasgow School of Art.
More information
For ideas on planning a trip to Scotland, visit www.visitscotland.com
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
The specs
Engine: 3.8-litre, twin-turbo V8
Transmission: eight-speed automatic
Power: 582bhp
Torque: 730Nm
Price: Dh649,000
On sale: now
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
THE BIO
Age: 30
Favourite book: The Power of Habit
Favourite quote: "The world is full of good people, if you cannot find one, be one"
Favourite exercise: The snatch
Favourite colour: Blue
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Biog
Mr Kandhari is legally authorised to conduct marriages in the gurdwara
He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada
Father of two sons, grandfather of six
Plays golf once a week
Enjoys trying new holiday destinations with his wife and family
Walks for an hour every morning
Completed a Bachelor of Commerce degree in Loyola College, Chennai, India
2019 is a milestone because he completes 50 years in business
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
More on animal trafficking
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
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Green ambitions
- Trees: 1,500 to be planted, replacing 300 felled ones, with veteran oaks protected
- Lake: Brown's centrepiece to be cleaned of silt that makes it as shallow as 2.5cm
- Biodiversity: Bat cave to be added and habitats designed for kingfishers and little grebes
- Flood risk: Longer grass, deeper lake, restored ponds and absorbent paths all meant to siphon off water
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Disclaimer
Director: Alfonso Cuaron
Stars: Cate Blanchett, Kevin Kline, Lesley Manville
Rating: 4/5
