YouTube Invests More Money Into Vevo To Fend Off Facebook
Ryan Martin / 10 years ago
Google has recently announced that it has just renewed its partnership with the music video website Vevo. Furthermore, Google has also made an investment with the company which has had very strong links with YouTube since its formation. The company is in fact mainly powered by the YouTube infrastructure.
Every video on the Vevo site is also available on YouTube with fewer regional restrictions. For record labels that have their own Vevo channel it has been a solid money earner though many have threatened to go with alternatives if Vevo didn’t increase their share. Despite this, if Vevo left YouTube it would pretty much be suicide for the company because despite Facebook being huge, it is relatively weak in the video space compared to YouTube. A move of Vevo from YouTube to Facebook would probably result in plummeting views and revenues.
The sum of Google’s investment in Vevo is not known but Billboard estimates suggest it is around the $40-50 million region giving Google a 7% share in Vevo.
Image courtesy of Vevo