Vevo look to make a profit in 2018 as their platform grows and they look to re-negotiate their deals with YouTube.
The music video platform owned by major labels, primarily Universal Music Group, looks like it’s here to stay. The site have posted their figures for 2017 and things are looking bright with revenues and music video views both rising 30% on the year before.
After years of posting losses Vevo finally looks like they could be moving into profitable territory. Vevo reported that their music videos now attract 25 billion views a month, a giant increase from their 19 billion monthly views from their last report. Revenues for Vevo this year raised up to $650 million from $500 million in 2016.
The music video platform was started by major label Universal Music Group and has since gained shareholders in the 2 other major labels Warner and Sony Music, as well as Alphabet/Google, and Abu Dhabi Media. Warner Music Group held out on Vevo for 7 years before finally joining in 2016.
Vevo and YouTube have had a somewhat symbiotic relationship but their partnership has been in question in recent years. Nearly all the artist YouTube Channel’s on YouTube are Vevo channels and YouTube is the primary source of their views and revenues although they have launched a standalone video platform.
YouTube has faced difficulty with the music industry of late thanks to their shockingly low streams per video, undercutting the value of music. Their streaming payouts pale in comparison to even the lowest of ad-supported music streaming services. YouTube have been working with labels to resolve this issue and with the launch of a new music service that pays more they could be working towards a healed relationship.