UPDATE 2-YouTube, Universal to launch premium music site

* Universal and YouTube to launch Vevo in months

* Both companies to share ad revenue

* Aims to generate more revenue than regular YouTube (Adds interviews with Google, Universal executives, background)

By Yinka Adegoke

NEW YORK, April 9 (Reuters) - Google Inc's (GOOG.O) YouTube and Universal Music Group, the world's largest music company, said on Thursday they will launch a premium music video website as they bid to increase revenue from YouTube's huge usage.

The new advertiser-supported site, featuring professional videos, will be called Vevo and is expected to launch in coming months, the companies said.

The deal is a boost for YouTube, which has been under increasing pressure from music labels and publishers who are frustrated that the popular site has been unable to pay higher fees for rights to use their music and videos.

Talks broke down late last year between YouTube and the No.3 music company Warner Music Group (WMG.N). Last month YouTube was forced to block all music videos in the UK and last week it had to do the same in Germany in a similar dispute with song publishers over money.

Vevo is an attempt to address this disparity between YouTube's popularity, it has 100 million users in the U.S. alone according to comScore, and its relatively low advertising rate or CPMs (cost per thousand page views) as it is called.