Google ‘s YouTube and Universal Music are in talks to create a premium online music video service. If they reach a deal, the service could mark a significant step forward in Google’s attempt to generate revenue from YouTube, which it acquired for $1.65 billion in 2006.

They are in talks to create a stand-alone site to showcase music videos by Universal artists, according to reports. The deal would ideally be broadened out to include videos by artists at the other major music labels in a concept similar to the TV shows available on NBC Universal and News Corp’s Hulu.com.

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