Universal Music Group continues to bolster its Internet profile via digital video.
The largest of the four biggest recording companies is expected to announce on Friday an agreement with Kyte, the video-streaming startup. Under the terms of the deal, Kyte is to provide the mobile and online platform for the label's artist, including 50 Cent, All American Rejects, Lil Wayne and Lady Gaga. Financial terms of the deal were not released.
Universal Music and Kyte have also agreed to develop new mobile entertainment applications. The question with a deal like this is why any of the labels need a video platform other than YouTube?
Ted Mico, the digital chief for Interscope Geffen A&M, one of Universal Music's subsidiary record labels, says Kyte's live-video streaming has impressed nearly everyone in the music industry. The service enables artists to shoot and distribute live video to fans from their dressing rooms, their limousines or even from the stage. This isn't meant to be the glossy, heavily-produced video productions that are often seen in rock videos.
“Kyte offered artists and fans a fantastic value proposition,” Mico said. “If you like the big budget stuff, this is really zero budget, but just as engaging in its own way because it has that immediacy and authenticity. We've waited a long time for technology that delivers on that and I think the Kyte platform does.”
This kind of live Web TV will appeal to bands and artists who can engage an audience just “by being themselves” Mico said.