Vevo is an upcoming music video website that is being put together by YouTube, Sony Entertainment, and Universal Music. At the end of August, the company CEO Rio Caraeff was rumored to be flying around the world in order to find potential investors at a $300 valuation. And today a press release has been announced about a funding deal.
Abu Dhabi Media Company bought a stake in Vevo and the funding round is rumored to give the company a $300 valuation. Sony and Universal Music both own stake, but Google does not. Google is on a revenue-sharing agreement with Vevo by providing the YouTube massive distribution platform. The full press release is available after the jump.
Vevo is a music video website in stealth mode that was started by YouTube and Unviersal Music. The company is currently seeking funding and is reportedly finding partners for their content. Reuters recently revealed that CBS Corporation and NBC is in talks with Vevo to license and develop shows for Vevo. Vevo is expected to officially launch in December and will have high quality music videos. The website will also have music-related shows streaming.
YouTube will be providing the technology and back-end for the website while Universal Music will provide the content. Sony Music is also on board with Vevo, but it is Warner Music and EMI have kept their distance thus far. Rio Caraeff is currently the CEO of Vevo. Vevo will make money from the advertising banners and text laced throughout the website. Since the quality of video will be higher, Vevo hopes to have higher advertising rates than YouTube. About 40 people are being hired to work for Vevo.
Vevo is a music video website that is a joint venture between Universal Music, Sony Music and YouTube. According to sources with paidContent, the company is out seeking funding based on a $300 milion valuation. Vevo CEO Rio Caraeff has been travelling across the country to meet with potential investors in order to get the project off the ground.
Vevo will be based on of New York City and Los Angeles. The company has been hiring engineers over the last several months. As of right now, it is unclear whether EMI and Warner will join the venture. As for Warner Music, CEO Edgar Bronfman has spoken against the idea publicly.
I would not be surprised if other labels jump on the opportunity to work with Vevo in the near future. Hulu has proven to the world that web video could replace television just like it could do with music television. Vevo can be followed on Twitter.com/Vevo.
Google Inc. (NASDAQ:GOOG) subsidiary YouTube and Universal Music Group are planning to launch a music video website together in order to increase both of their revenues. The Universal Music channel on YouTube is already one of the most subscribed to on the video website. The combined website will be called Vevo.
This deal is a major boost for YouTube because the video website is getting pressured to find additional revenue streams and is taking a lot of flack for not being able to pay fees for the rights to use their music and music videos.
Vevo will be wholly owned by Universal and it will feature higher quality videos than what is seen on YouTube itself. “The rationale is to help make Vevo a place that brands feel more comfortable,” stated Rio Caraeff, EVP of Universal’s eLabs division.
Universal hopes that Vevo will be comparable to Hulu. Vevo will syndicate videos through their platform called Vevo Music Network. Universal is planning to partner with EMI and Sony Music Group who have already renewed their contracts with YouTube. Partnering with Warner Music Group will be slightly more challenging because they have not been able to make a deal with YouTube in the past.
