The four major labels are interested in broadening their online video footprint by adding Hulu, a video site that streams on-demand television shows, to the list of online outlets that offers music videos, as previously reported by Billboard. Labels in the Warner Music Group stable are particularly interested, as they currently are unable to use YouTube due to the company's ongoing licensing negotiations.

But, an online report at Bloomberg stating that Hulu will be competing with Vevo.com, the service in development by Universal Music Group and YouTube, is inaccurate and confuses the mission of the Vevo service. The Vevo site is designed as a central repository for all music videos of those labels signed on (currently only UMG). Vevo will not compete with other online video sites, but rather will act as a syndication machine for them.

UMG and any other labels participating in Vevo will post their videos to Vevo and through the joint venture sell advertising around them. Other sites can stream those same videos - like Hulu, YouTube, or Yahoo - by striking a syndication agreement with Vevo.

According to the Bloomberg story, Hulu won't offer ownership in the site to music companies the way it does TV and film studios who contribute content. Universal is working to bring other record labels into the Vevo fold, but it is not clear whether it is offering them an ownership stake in the venture either.