Google has confirmed that it will be renewing its partnership with Vevo, keeping the popular music website on Youtube.
In addition to renewing the original agreement, Google with also be investing in Vevo.
Most people already think of Vevo as an extension of Youtube that provides HD video, but the website is actually a joint venture between Sony Entertainment, Universal Music Group, and Abu Dhabi Media. Keeping the property on Youtube was a big deal as reported by cnet.com:
“Vevo is the third most-watched video site in the U.S., with 52 million viewers for the month of March, according to ComScore. Tops was Google, with 153.9 million viewers, largely through its YouTube operation, and second was Facebook, with 63.8 million viewers.”
The investment into Vevo was also a strategic move by Google. Vevo has reportedly been looking to raise capital since about February and there were rumors that other companies were looking to make an investment into the company, which would possibly move 52 million viewers to a Google competitor. According to techcrunch.com:
“On Google’s end, its investment helps ensure that Vevo won’t sign a content deal with Facebook. Back in February, Vevo started requiring that all registrations be made through Facebook, which fueled speculation that it was planning to move away from YouTube.”
On Vevo’s end, it will solidify the business model by signing a multi- year deal and creating a long-term relationship with Youtube, which is the perfect strategic partner for them.
Techcrunch.com said Vevo will use the capital to “build its international presence. The company’s April launch in the Netherlands brought the total number of countries it operates in to 11, including the U.S., Australia, Brazil, Canada, France, Ireland, Italy, New Zealand, Spain and the U.K.
“Vevo has also been expanding its product offerings beyond music videos to apps for iOS, Android and Windows Phone Xbox, as well as music channel VEVO TV.”
All this sounds great, and we know Vevo’s importance to providing a place to discover new music videos, as it has fast become a replacement for MTV.
However, now that it is more stable and it has the financial backing that it needs, the company needs to make a shift to be more innovative and engaging, providing more behind-the-scenes content and live shows that compete with the likes analog TV.
When launched, the goal for Vevo was to be the Hulu of music videos, and while it’s not quite there yet, this new move should help to facilitate that goal tremendously.