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Digital
VEVO making millions in ad revenues
By CMU Editorial | Published on Friday 1 October 2010
The boss of Universal and Sony owned VEVO says the US-based music video service is now scoring 49 million unique users a month and generating tens of millions of dollars in revenue, which is nice. Over half that income, he says, goes back to the content owners.
According to FMQB, VEVO boss Rio Caraeff told a TechCrunch conference that his company is achieving some successes in its attempt to “restore the lustre of video advertising”. He added: “We’ve proven that we can aggregate a large audience and proven that music is valuable to advertisers. If people are passionate than we can monetise that audience”. However, he added it is still early days for the service, which is yet to turn a profit, and that the whole venture is still an “experiment on a grand scale”.
As previously reported, VEVO uses YouTube technology, and many of its users come via the Google-owned platform. The whole project was basically set up by Universal to prove (mainly to pile-em-high-sell-em-cheap Google) that higher ad rates could be charged when you have a video service containing only premium content. VEVO is currently only available in the US, though some of its content can be accessed worldwide via YouTube.