YouTube has extended its ongoing content partnership with VEVO. Though some rumors were spread about the two video provider’s relation, the signing of the extension has cleared the apprehensions. Additionally, as it was suspected back in January, YouTube has invested in the company too. The amount of the investment was not disclosed. The extension was reported by Billboard, which has claimed that the invested amount is ranged between $40 million to $50 million. According to the report, this investment has earned the Google-owned company a 7 percent stake in VEVO, its leading video partner.
Vevo’s Other Endeavors
The deal between these two companies was expected, but some thought VEVO may want to explore other possibilities too. Some rumors claimed that VEVO was considering a partnership with Facebook. Nonetheless, VEVO’s alliance with YouTube is firmly established and therefore, the confirmation of the deal should not be a surprise. According to ComScore’s estimate, VEVO videos were watched more than 50 million times in May 2013 on YouTube. While this is the highest among the other content providers, Nielsen supports the fact too. Billboard has noted that YouTube supplies the majority views for VEVO, which has made them inseparable.
VEVO is trying to increase its global presence and invest more in music based contents. The investment of Google will help VEVO in strengthening its global presence and to create more alliances. The firm may engage in partnerships with labels like Universal and Sony. However, it is not interested in Warner Music as the company has a YouTube channel of its own. On the other hand, Google is continuing its effort to bring more contents to YouTube. The Internet giant has invested $200 million in premium channels and also funded Machinima, a video game media accompany with $35 million. Extending the partnership with VEVO will ensure the company a large supply of content in the coming years.
VEVO In The Netherlands
VEVO launched its streaming music video service in Netherlands on last April. The Dutch viewers will now be able to enjoy 75,000 music videos provided by the company. Including Netherlands, VEVO is now operating in 11 countries, which are – USA, Canada, UK, Ireland, France, Australia, New Zealand, Spain, Italy and Brazil. VEVO localizes its services for every country, which includes developing a localized website and featuring local artists. In the Netherlands, VEVO will promote local artists like Anouk, Lisa Lois, Afrojack, Gers Pardoel and advertise various brands including Citroen, Ralph Lauren, Vodafone, Imgroma, Beslist etc.
What Google Thinks
A Google statement noted that the company is excited with the future potential of VEVO. It also wants to provide the YouTube users with some remarkable music experiences. Previous rumors suggested that VEVO was looking for ways to raise cash and Google seemed the perfect fit in that scenario. On May 2012, a New York Post report claimed that Google was planning to buy an equity stake of the video providing platform in exchange of $1 billion. Some others suggested that Facebook also thought f acquiring VEVO at that time.
In the US, VEVO was the third most popular video provider with 52 million unique visitors in March 2013. Google was the most popular with 153.9 million viewers, thanks largely to YouTube. With 63.8 million unique visitors in March, Facebook was the viewer’s second choice for watching video in March.