Vevo has a very strong presence in the realm of digital music. The music video site has garnered a rather sizeable user base since its inception. It now seems that YouTube is considering buying a minority stake in Vevo, evidently in an attempt to expand its influence in digital music.
This much is rumored for now. According to the people familiar with the matter, YouTube and Google have finalized the deal with Vevo but it hasn’t been announced yet. Only recently, Google had invested rather heavily in yet another video company called Machinima. The search giant coughed up a whopping $35 million as part of that deal.
The deal with Vevo, it is being said, involves a lot more capital than that. This essentially shows that Google is looking forth to a rather long-term collaboration with Vevo. The deal, however, will have to be detailed since Vevo relies on YouTube itself to distribute its music videos, something YouTube also accomplishes with a larger scope.
YouTube is also in talks with two major music labels, namely Sony and Universal. The video website is trying to reach an agreement with the labels so as to allow them to make revenue off any of their copyrighted content uploaded to YouTube.
Naturally, the labels may see this as a walk-away from their regular revenue but recent instances have shown that YouTube brings a lot more exposure to music videos than the labels can muster on their own. It is this that may eventually lure the labels to finalize the deal which is also in works.
Courtesy: All Things D