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Music labels in talks with Hulu

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Several major record labels have recently discovered a global system of interconnected computer networks they believe could be used as a new platform for distributing musical videos.

This "information super highway," (or "Internet" as those who've adopted this technology call it) could revive an ailing music video biz if record labels could just figure a way to make heaps of money with it.

Music industry chiefs already tried striking deals with Google's YouTube last year. And while there's some profits to be made by way of the few 10ths of a cent per showing that comes from ads running alongside their videos, it's apparently not the kind of profits the music industry was hoping for.

The FT reports four major labels are now in preliminary talks to start their own video website. Those plans may involve pondering partnerships with Hulu or even creating a premium service on YouTube.

While no announcement of a deal is imminent, the execs appear to be favoring a pact with Hulu – a service currently offered only to users in the US.

"If it happens at all it will be with Hulu," a unnamed record label representative told the FT.

Which is pretty straight forward unfortunate for folks outside the States if YouTube can't settle the money issues with music labels. This month, Warner Music Group chose not to renew its contract with YouTube because WMG claimed it wasn't adequately compensated. The label's content was unceremoniously yanked from the site soon after negotiations broke down.

WMG said it may yet return to the YouTube however, if only enough dollars are sent its way. ®

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