Vevo, an online music video service expected to launch later this year, has landed AT&T as an advertiser, both companies have announced.

According to Rio Caraeff, president and CEO of Vevo, and Chris Schembri, AT&T's VP of media services, AT&T will provide financial support to the music service - a joint venture of YouTube, Universal Music Group, and Sony Music Entertainment - "across a variety of connected platforms."

It's a significant win for Vevo, reinforcing the industry notion that its model is one to watch - for both advertisers and content providers.

With rumors preceding the official announcement, plans for Vevo were unveiled this past spring. Many viewed it as a tacit acknowledgement that the entertainment industry's strategy of simply putting content online and expecting users to show up was not working, especially in light of Hulu's success.

Vevo Next Hulu?

According to some industry watchers, however, Vevo may have what it takes to be the next Hulu. "Vevo has hit upon the perfect combination of quality content and a platform very familiar to users - the only winning model thus far," according to Rishi Garg, cofounder of FanSnap, (via the E-Commerce Times). Garg also noted that every attempt by studios and labels to put their own content online has failed except for Hulu because Hulu's content is good enough that viewers are willing to tolerate the ads.

Vevo's vision was further validated with news last week that Abu Dhabi Media Co. joined as a founding shareholder. "The amount of the investment by ADMC, which is owned by the government of the United Arab Emirates, was not disclosed but Wall Street Journal-owned blog MediaMemo said it valued VEVO at $300 million," the AFP reported.

AT&T's participation also highlights the growing importance video has to the telecom provider. Recent comScore statistics show that among the top mobile operators in the US, AT&T claimed the most mobile video viewers in August, with 4.4% of subscribers accessing either programmed or on-demand mobile video.

As more information becomes available about Vevo's launch, Vevo plans to keep followers abreast of its activities on its Twitter feed.