Muziic, a new website that provides free music and videos without advertisement, is causing an upset amongst major record labels. When the former Windows software application failed to gain a following, a web-based version of the service was released. Now that the website has become a success, major labels are worried that they will no longer gain the revenue that they had hoped for with the launch of Vevo video service.
YouTube operates Vevo, which is owned by Universal, Sony, and Abu Dhabi. Vevo video service was created as a way for consumers to watch free music videos while labels could still profit from advertisements placed on the site. Now, with the emergence of advertisement- free Muziic, record label hopes to create a profit from online music videos may be crushed.
The problem with Muziic, however, is that it uses Vevo's video content via YouTube. In a statement to wired.com, Vevo stated, "Vevo does not authorize, condone, or otherwise endorse, in any way whatsoever, the actions of Muziic which involve our licensed music videos or registered trademarks."
In addition to the lack of advertisement on the site, Muziic has a lot to offer to music fans. The site allows users to make playlists, download a desktop player, and it features an iPhone app as well as a FaceBook app. These tools make it easier for the consumer to access their facorite music, and they set Muziic apart form other music websites. Sixteen-year-old Muziic co-founder David Nelson stated, "[o]ur integration of Vevo content reflects how many (myself included) felt Vevo.com should have been. Examining user feedback for Vevo on Twitter and in the blogosphere was a big factor in its design."
Muziic is great news for the music fan, but not so much for the record label hoping to make a profit form music videos. Regardless, this website has succeeded in becoming the go-to site for many music fans, because the creators listened to what consumers wanted and created their product accordingly.