What do Iron Maiden, Rick Astley, Eminem, Justin Bieber, Marilyn Manson, Sublime, Shania Twain, Limp Bizkit, and Abba have in common?
Are you surprised? Perhaps on the basis of the wide variety of musical genres represented by these artists, yes. However, with regard to current trends in music consumption, online and elsewhere, Vevo makes perfect sense – which is why it’s taking over how America receives its music.
Vevo to the rescue?
According to Credit Suisse analysts, YouTube only makes 0.4 cents per video view. This garners a measly $240.9 a year for a venture whose bandwidth, licensing, and operation costs will run upwards of $700 million. In other words, “Google will lose $470.6 million on YouTube, for which it paid $1.76 billion in 2006.”
Vevo may provide the solution to Google’s online video woes. Launched on December 8, 2009, with the slogan “Music Evolution Revolution!,” Vevo overcame MySpace Music as #1 music site in the US within its first month. The company represents a collaboration between Sony Music Entertainment, Universal Music Group, and Abu Dhabi Media. Vevo has domain over music videos from three of the “big four” major record labels: Universal Music Group, Sony Music Entertainment, and EMI. (Warner partnered with MTV Networks.)
Today, approximately 23,000 videos are available on Vevo. Vevo’s near dominance of the major music labels is allowing it to approach monopoly status. According to Wired Magazine, “there could soon be no other game in town.”
How does this help Google? Well, Google and VEVO share the advertising revenue, and the institution of Vevo ended Google’s licensing difficulties with Universal Music Group. “The purpose behind Vevo is to sell advertising at higher rates than YouTube does now.”
Changing music as we know it
Now, we’re not saying Vevo has single-handedly sparked the renaissance of the music video, but it has helped give the format a kick in the you-know-what.”