Skip to main content

YouTube pumps £30m into music video firm Vevo

More than four years after helping to launch music service Vevo, YouTube has renewed an agreement to retain Vevo content on its site.

The deal also calls for the Google-owned site to invest in Vevo, an amount that Billboard reported will land between $40 million and $50 million (£26 million and £33 million), giving the tech giant a roughly seven per cent stake in Vevo.

"We made an investment in Vevo," a YouTube spokeswoman said in a statement. "We are excited by their future prospects and to provide YouTube users with the best possible music experience."

Vevo did not immediately respond to a request for comment.

According to Billboard, Vevo plans to use the money to expand its international presence and boost original music-related content alongside its library of official music videos from Sony and Universal. Warner Music, however, pulled its videos from YouTube in late 2008, and has been operating competing channels ever since.

Vevo's contract with YouTube ended in April, leaving the companies to operate under a temporary extension as they negotiated an ad revenue split, according to Billboard. The two organisations depend deeply on one another — Vevo snagged the top channel partner spot on YouTube in May, while the majority of Vevo's video views come from YouTube users, Billboard said.

Vevo went live in December 2009, opening the doors to a "premium online music video hub" powered by YouTube's video technology. Users can access content via or through the Vevo YouTube channel, which includes a Vevo-branded embedded player.

Sony Music Entertainment joined the venture in June 2009, while AT&T signed on four months later; Abu Dhabi Media Company became a founding shareholder at the same time, contributing a reported $300 million (£197 million).