YouTube has teamed up with Universal Music Group to launch a new music service, the two companies have announced.

Called Vevo the new venture will be a music and video entertainment service that will feature UMG's premium video content in one handy place for users to watch and "enjoy".

Launching later this year, Vevo promises to be yet another online music video hub built for consumers that, say the companies "will blend UMG's broad catalogue of top artists and content with YouTube's leading edge video technology and user community".

Clearly hoping to make a pot of cash from the new venture Doug Morris, chairman and CEO of Universal Music Group is already "bigging" up the service:

"We believe that at launch, VEVO will already have more traffic than any other music video site in the United States and in the world. And this traffic represents the most sought after demographic for advertisers, especially as advertising dollars continue their shift from old media to new".

You can see why the two companies are keen to partner; UMG's YouTube video channel has more than 3.5 billion views since its creation, making it the most watched channel on YouTube.