After a 7 year standoff Warner Music signs a deal with Vevo
Warner Music have made a deal with Vevo after steering clear of the music video platform set up by the 2 other major labels Sony and Universal 7 years ago.
Vevo was set up 7 years ago by 2 of the 3 major labels, Universal Music Group and Sony Music Entertainment, as Warner Music Group decided to opt-out and traverse the new online world of visual music alone. The music video platform has since laid claim to the majority of major artists, and many smaller ones, and holds ownership of many music channels on YouTube.
Rumours arose that Warner were making an agreement with Vevo as the labels re-united to oppose YouTube, claiming it’s payout for music on the video site were unfairly low. Those rumours have now been confirmed and Warner Music has signed a licensing agreement with Vevo to distribute certain music videos on Vevo’s own video site and mobile app. The deal curiously omits YouTube, meaning WMG still holds full ownership of their music videos on YouTube.
Vevo’s CEO Erik Huggers said of the deal: “Today marks an important milestone for Vevo as we forge a new relationship with Warner Music Group based on a shared vision of putting artists first and creating a platform that does justice to the music. We’re excited to partner with Warner Music and bring their artists’ content to life through our new mobile and web experiences and across a range of our programming.”
CEO of Warner Music Group, Steve Cooper added: “Erik and his team continue to evolve their service and bring to life a new vision for Vevo. We’re pleased to have built a flexible and mutually beneficial relationship that will bring additional creative and commercial possibilities to our artists and songwriters. This partnership is the latest in a recent series of deals that are helping us explore ways to unlock the true value of music videos in attracting and engaging vast audiences.”
A partnership with the world’s third major label is a massive step for Vevo, especially as they approach the release of a subscription service that they hope will solidify them as their own platform and draw people to their content outside of YouTube. There’s currently no set date for the launch of Vevo’s subscription service but it’s expected it could come before the end of the year.
https://youtu.be/r1ogD6W38bc