Universal Music Group plans to begin charging online services like AOL, Yahoo!, MTV.com and MSN for access to music videos, sources familiar with the situation say.

Universal Music Group plans to begin charging online services like AOL, Yahoo!, MTV.com and MSN for access to music videos, sources familiar with the situation say.

Under a new policy, music service providers that don't have a standard commercial licensing deal for videos with UMG will no longer have access to the major's clips for streaming video on demand (VOD) over the Internet and cable/satellite systems. In addition, UMG will stop purchasing advertising on music sites that don't pay to license its video content, sources say.

UMG is already charging services for the ability to build libraries of catalog videos; however, up to now, the major has been servicing new videos free of charge in the name of promotion. The label -- which spends millions each year to make music videos -- is looking to set up such clips as an additional revenue source, as online services and cable providers look to build businesses around VOD.

The licensing policy does not apply to UMG artists' Web sites, or to short-term promotional deals with non-music consumer brands that don't offer archives of music videos. Additionally, other non-music lifestyle sites that cater to specific audiences will have limited free access to videos from new/developing artists. Such sites will be allocated a certain number of video plays.

Also as part of the policy, retailers will be permitted to stream 30-second videoclips provided they offer a "buy" button to purchase the track. Online radio stations will have the option of offering 30-second clips or providing links to an artist-branded/controlled media player to see the video in its entirety.

UMG has already come to terms on its first deal under the policy -- a new pact with MSN Music. As part of the agreement, the companies will team on a series of promotional initiatives to drive users to MSN.

Other online services contacted by Billboard.biz are still trying to determine how much if any of their content must be taken down in the short term as a result of the new policy.

UMG will honor its existing promotional video deals online, sources say. For example, the label has a deal with Yahoo!'s Launch to premiere "Candy Shop," the first video from 50 Cent's new album "The St. Valentine's Day Massacre."

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