YouTube Is VEVO’s Latest Investor

/ Jul 3, 2013

YouTubeVevo2

YouTube is extending its content partnership with VEVO and is also making an investment in the music video company, according to Billboard. The investment, which Billboard and Financial Times had pegged in the $40-$50 billion range earlier this year, would give Google/YouTube a 7% stake in VEVO.

In a statement, YouTube confirmed the investment: “We made an investment in VEVO. We are excited by their future prospects and to provide YouTube users with the best possible music experience.”

It’s not bad for a partnership that hasn’t always been cordial. Last year, Sony Music Entertainment CEO and VEVO founder Doug Morris had this to say about VEVO’s relationship with YouTube: “Google is charging us a lot of money to put our videos on their platform, and we would like them to reduce their fees.”* He refused to disclose the specifics of VEVO’s revenue-sharing deal with YouTube, though it has since been reported that VEVO gives a third of its revenue to YouTube and over half to music labels. Clearly VEVO wanted to reduce YouTube’s share, which isn’t exactly an uncommon conversation among YouTube creators and media companies these days.

It actually prompted Morris to issue the ultimatum that if YouTube did not comply, there were “at least three other companies” who would take VEVO’s videos. These other companies included Facebook, Apple, and Amazon, according to the LA Times.

Not sure how serious the ultimatum was, considering how important YouTube and VEVO are to each other. Based on comScore numbers, VEVO is consistently YouTube’s top content partner. In May, VEVO reached 50.2 million uniques on YouTube. Fullscreen, which came in second place, reached nearly 36.5 million. On the other hand, as Billboard notes, a significant chunk of VEVO viewers come from YouTube, regardless of all of the other distribution points the music video company is offering.

Nevertheless, the relationship has been frosty at times. That shouldn’t be an issue anymore with YouTube placing an investment in the company.

Terms of the deal have not been disclosed, though Billboard reports that VEVO will use the funds to expand internationally as well as create more original music-related content.

VEVO was a Newfront presenter in 2011 and 2012, and has a lineup of original programming that includes “The Comment Show,” “Lyric Lines,” and “VEVO Certified.”

*Morris does not have an operational role at VEVO, though he said he closely follows the company as the chief at SME, which is a VEVO stakeholder.

Tags: , , , , , , , , ,


the youtuber who isn't a youtuber andrew vallentine

Meet the Biggest YouTuber Without a Channel

the revolution of publishing online

Back to the Future: The Revolution of Publishing

hulu-plus

Does Taking on Cancelled Network Shows Make Sense for Hulu?

Wayside Creations makes live-action adaptations of video games

Wayside Creations Calls Success on Kickstarter a...

Read today's digital video news stories

Quick Breaks: FailArmy Launches Second Channel; YouTube Improves...

YouTube fans in Singapore

Endemol Beyond Launches in Singapore, Where YouTubers Happen to Thrive

Who makes the most effective ads on YouTube?

Which Industries Are Creating YouTube’s Most Effective Ads?

Digital video industry news today

Thursday 5.21.15: News to Know

BoJack Horseman second season starts July 2015

‘BoJack Horseman’ Will Return to Netflix on July 17

Dutch YouTuber Enzo Knol will star in a feature film

Film Starring European YouTuber to Come to Theaters in the Netherlands

wibbitz is a text-to-video israeli startup

Text-to-Video Startup Wibbitz Raises $8 Million in Series B Round

this web series about high school cheerleaders rules

Web Series Wednesday: Coming of Age

This kid is shocked by what she's seeing on YouTube Kids.

Google’s YouTube Kids App Is Full of Booze, Drugs, and Gore

Read today's digital video news stories

Quick Breaks: Netflix Grabs Kevin James Film; Vice Sports...

Rightster partners with SPotify on video initiative

Spotify Tapped Rightster for Its Global Reach and Video Expertise

soccer fans get excited for OTT

Women’s World Cup, Lacrosse Games Going Live...

spotify partners with major publishers for native video content

Spotify Now Hosts Video Content from CNE, Vice, ESPN, Maker…

CEO of YouTube to keynote at VidCon again

YouTube CEO Susan Wojcicki to Reflect on the Platform’s 10...

Digital video industry news today

Wednesday 5.20.15: News to Know

Jen Kirkman's getting her own comedy special on Netflix

Jen Kirkman Gets Lost in the Laughter in her Netflix Comedy Special

Read today's digital video news stories

Quick Breaks: Hulu Bulks Cast Lineup for “11/22/63”

Bill Nye the Science Guy is now on Netflix

Science Rules! ‘Bill Nye the Science Guy’ Comes to Netflix

YouTube vs TV, engagement vs reach

Engagement Is Everything: Rethinking Celebrity and Influence

Machinima keeps revamping its leadership team

Machinima Adds Two, New Execs to Its Senior Leadership Team

VideoAmp hires its first chief business officer

VideoAmp Hires Jay Prasad as First Chief Business Officer

Digital video industry news today

Tuesday 5.19.15: News to Know

A new weekly variety show from Mashable and Above Average...

Mashable and Above Average Launch Variety Web Show

Webby Awards took place last night!

David Carr, ALS Ice Bucket Challenge Founder Honored at Webby Awards

BabyCenter telenovela web series

BabyCenter en Espanol Debuts Telenovela/Tips Web Series (Exclusive)

Read today's digital video news stories

Quick Breaks: Conde Nast Launches Italian Movie Channel; China...

DanceOn Baby

DanceOn to Help Grow TuneCore Artists’ Audiences

Weird Al looks bemused...

CollegeHumor & IFC to Induct Weird Al into ‘Comedy...

Grand Theft Auto is the top two game franchise on YouTube

The Top Four Game Franchises on YouTube Aren’t Budging...

The Young Turks are now on AOL On

The Young Turks Are Now on AOL On

Hearst launched GoodHousekeeping.TV

Hearst Launches OTT Channel for Good Housekeeping

Digital video industry news today

Monday 5.18.15: News to Know

British guy watching YouTube

Good YouTube Reviews Drive Purchases For 89% of UK Consumers (Study)

Buzzer_480x400_100B_wg (2)

Fox Sports Has Successful Web Shows, and It’s Taking Them to TV

Vice FilmBuff

Vice and FilmBuff Partner to Release Feature Film in North America