Vevo are reportedly looking for a giant $500 million in funding as they prepare to launch their own subscription service.
A report by the Financial Times reveals that Vevo have brought on Goldman Sachs to help them find $500 million in funding. Vevo are presumably looking to find money to help launch their upcoming, long awaited subscription service.
The music video service announced plans to add a subscription tier to their video platform in February but have since revealed little more like; when exactly is it released? how much will it cost? what are the benefits over it’s free offerings? Although remaining mostly tight lipped a job opening at Vevo suggested we could see long-form, original programmes.
According to the reports on Vevo’s new search for $500 million they also hope to expand internationally using the money. Vevo are currently in a better position than ever as they recently signed Warner Music on music video distribution. Warner were the only 1 of the 3 major labels that didn’t come together to start Vevo 7 years ago, now all 3 major labels distribute music videos through Vevo.
Vevo follow other free services like YouTube, the world’s biggest video hosting site, which introduced their first subscription service YouTube Red last year. Open music streaming platform SoundCloud also launched their first subscription offering earlier this year with SoundCloud Go.
With the world’s 3 largest music labels behind them you’d think Vevo wouldn’t have trouble funding themselves but perhaps their ambitions go further than their parent companies’ reach. Whilst Vevo look to receive half a billion dollars in funding we’ll continue waiting to see what we get with their subscription service.