Google Inc's YouTube said on
Wednesday that it has made an investment in Vevo, an online music video hub
that provides some of the most popular content on YouTube.
YouTube and Vevo also renewed the partnership that allows YouTube to feature Vevo's music videos on its website, with the two companies sharing the ad revenue.The original partnership deal, which dates back to 2009, ended in December, but had been temporarily renewed while the two companies negotiated a renewal. The companies did not provide details about the terms of the renewal.The size of the investment, which YouTube did not disclose, was between $40 million and $50 million, according to Billboard."We made an investment in VEVO. We are excited by their future prospects and to provide YouTube users with the best possible music experience," YouTube said in a statement. Vevo, which is a joint venture owned by Universal Music Group, Sony Music Entertainment and Abu Dhabi Media Co, did not return requests for comment. Vevo streams music videos on its own website. It also has a co-branded "channel" on YouTube that features music videos from popular artists, including Rihanna, Adele and Lil Wayne.Vevo was the most popular partner channel on YouTube in the United States in May, with 50 million unique viewers, who spent an average of 36.1 minutes on the channel, according to industry research firm ComScore.YouTube is the world's most popular online video destination, with more than 4 billion video streams every day. While much of the fare on YouTube consists of amateur home videos that users upload to the site, YouTube has stepped up efforts in recent years to provide professionally produced videos.YouTube has confirmed that it has signed an extension to its content partnership with VEVO, ending speculation about the two video sites’ relationship . Confirmation of the new ‘multi-year’ deal was first reported by Billboard (via The Verge Google-owned YouTube has a 7 percent stake in its leading video partner.A YouTube spokesperson confirmed the deal to TNW, which replaces the temporary arrangement that the two firms had in place since their previous contract lapsed in April:We made an investment in VEVO. We are excited by their future prospects and to provide YouTube users with the best possible music experience.The deal had been rumored since earlier this year but, prior to that, VEVO was thought to be exploring other possibilities, which were said to have included a possible alliance with Facebook. However, the existing relationship with YouTube is well-established and it isn’t a surprise to see the deal finally confirmed. VEVO is said to be using its windfall to grow its global presence and increase its investment in music-based content. The firm is likely to expand its partnership with labels Sony and Universal but not Warner Music, since the latter runs a competing YouTube channel. With so many viewers, YouTube could ill afford to lose Vevo. On the other hand, the vast majority of Vevo's video views come from YouTube users.The multi-year renewal ends the uncertainty around Vevo's symbiotic relationship with YouTube, bringing a level of stability to VEVO's business model.Vevo has been busy trying to raise capital for its ambition to grow into a global media brand centered around music, retaining Allen & Co. earlier this year to facilitate negotiations and financing. Among the companies approached back in February is Guggenheim Partners, which owns Billboard's parent company, Prometheus Global Media.
YouTube and Vevo also renewed the partnership that allows YouTube to feature Vevo's music videos on its website, with the two companies sharing the ad revenue.The original partnership deal, which dates back to 2009, ended in December, but had been temporarily renewed while the two companies negotiated a renewal. The companies did not provide details about the terms of the renewal.The size of the investment, which YouTube did not disclose, was between $40 million and $50 million, according to Billboard."We made an investment in VEVO. We are excited by their future prospects and to provide YouTube users with the best possible music experience," YouTube said in a statement. Vevo, which is a joint venture owned by Universal Music Group, Sony Music Entertainment and Abu Dhabi Media Co, did not return requests for comment. Vevo streams music videos on its own website. It also has a co-branded "channel" on YouTube that features music videos from popular artists, including Rihanna, Adele and Lil Wayne.Vevo was the most popular partner channel on YouTube in the United States in May, with 50 million unique viewers, who spent an average of 36.1 minutes on the channel, according to industry research firm ComScore.YouTube is the world's most popular online video destination, with more than 4 billion video streams every day. While much of the fare on YouTube consists of amateur home videos that users upload to the site, YouTube has stepped up efforts in recent years to provide professionally produced videos.YouTube has confirmed that it has signed an extension to its content partnership with VEVO, ending speculation about the two video sites’ relationship . Confirmation of the new ‘multi-year’ deal was first reported by Billboard (via The Verge Google-owned YouTube has a 7 percent stake in its leading video partner.A YouTube spokesperson confirmed the deal to TNW, which replaces the temporary arrangement that the two firms had in place since their previous contract lapsed in April:We made an investment in VEVO. We are excited by their future prospects and to provide YouTube users with the best possible music experience.The deal had been rumored since earlier this year but, prior to that, VEVO was thought to be exploring other possibilities, which were said to have included a possible alliance with Facebook. However, the existing relationship with YouTube is well-established and it isn’t a surprise to see the deal finally confirmed. VEVO is said to be using its windfall to grow its global presence and increase its investment in music-based content. The firm is likely to expand its partnership with labels Sony and Universal but not Warner Music, since the latter runs a competing YouTube channel. With so many viewers, YouTube could ill afford to lose Vevo. On the other hand, the vast majority of Vevo's video views come from YouTube users.The multi-year renewal ends the uncertainty around Vevo's symbiotic relationship with YouTube, bringing a level of stability to VEVO's business model.Vevo has been busy trying to raise capital for its ambition to grow into a global media brand centered around music, retaining Allen & Co. earlier this year to facilitate negotiations and financing. Among the companies approached back in February is Guggenheim Partners, which owns Billboard's parent company, Prometheus Global Media.
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