Universal Music Group

If Rio Caraeff had his way, the phrase "I want my MTV" would be replaced by "I want my Vevo." The 34-year-old Santa Monica music executive, who once headed the digital music business for Universal Music Group, launched Vevo in December. In April — less than six months later — the site vaulted into the No. 1 spot for online music videos in the U.S., garnering more than 43 million unique viewers who watched 350 million streams, according to ComScore Inc. Among all video sites, Vevo ranked fourth, just after Google Inc., Yahoo Inc. and Fox Interactive Media, and beating out the likes of Facebook Inc., Microsoft Corp.

The Justice Department has started reviewing the pricing and promotion of digital music by Apple Inc. and Amazon.com Inc., according to sources familiar with the discussions. Four music labels — EMI Music, Sony Music Entertainment, Universal Music Group and Warner Music Group — were contacted by Justice Department officials several weeks ago, sources said. Investigators had asked about the labels' participation in Amazon's program that gives discounts on albums and songs a day before the music is released widely in stores and on other music sites.

Bob Mercer, a music industry executive who was managing director of EMI Music in Britain in the 1970s and most recently was chief executive of the "Now That's What I Call Music!" venture that releases a bestselling series of hit-single compilation albums, has died. He was 65. Mercer died of lung cancer May 5 at Cedars-Sinai Medical Center in Los Angeles, said his wife, Margie. As chief executive of "Now That's What I Call Music!," Mercer presided over an enterprise that has sold 77 million albums in the United States since its debut in 1998.

French media conglomerate Vivendi hopes it has found a leader inside its Universal Music Group to help guide it into the digital future. Lucian Grainge, head of the music group's international operation, has been named chief executive, starting Jan. 1, 2011. Until then, he will share responsibilities with Chairman and Chief Executive Doug Morris, who said in November that he planned to step down from the executive post. Morris, 71, remains chairman of the music group. Grainge, 49, has spent the last five years running operations in 50 countries outside of North America and is credited with expanding Universal Music's reach through digital distribution as well as moving into new businesses, such as merchandise sales, live event production and artist services.

EMI Music became the first major music company to agree to distribute its music videos and concert footage on Hulu, the popular online video site. The London company will make content available from its various music labels, including Virgin, Capitol and Blue Note. It launches with exclusive footage of Norah Jones performing music from her new album, "The Fall," in a concert at Le Poisson Rouge in New York. Music videos already have shown appeal for rival online video site YouTube, which is working with Universal Music Group to develop a service called Vevo, which would highlight such content on YouTube and elsewhere online.

It may own a mere 20% of NBC Universal, but Vivendi is calling the shots when it comes to whether the fabled movie studio and television company will end up in the hands of cable company Comcast Corp. or some other buyer. That's because every year in November, Vivendi can opt to sell its stake. There's also a little-known clause in the contract between Vivendi and General Electric Co., which owns 80% of NBC Universal, that gives the French media conglomerate veto power on any change in control.

A federal judge in Los Angeles has ruled against Universal Music Group in a copyright suit against video website operator Veoh Networks Inc. U.S. District Judge Howard Matz dismissed the 2007 suit in which Universal accused Veoh of supporting and inducing copyright infringement. He ruled that Veoh was taking reasonable steps to prevent and take down infringing videos. Veoh founder Dmitry Shapiro called the decision "a great victory." Universal, a unit of France's Vivendi, said it would appeal.

From his rented mansion on Carolwood Drive, Michael Jackson sketched out ideas for the merchandise he planned to sell in conjunction with his "This Is It" concert series at London's O2 Arena, including a varsity jacket and a red handbag with a diagonal black stripe that evoked his costumes from the "Thriller" music video. The May brainstorming session resulted in designs for more than 300 items, including jigsaw puzzles and games for children and rhinestone dog tags.

U2 lead singer Bono, well known for his ONE campaign against poverty, has turned his focus to a charity case closer to home: the ailing music industry. The rocker is credited with bringing together Universal Music Group, the world's biggest music company, and YouTube, Google Inc.'s online video site, for talks that on Thursday resulted in a partnership to launch a music video service featuring professionally produced content from the label's big-name acts.