YouTube and VEVO have made it official. After a bunch of speculation and lots of brave talk from VEVO over the past year, and the contract expiring in April, it was inevitable that these two would work out a deal at some point. Both kind of need each other. VEVO is great on YouTube and it's where most people watch their music videos, and YouTube would lose a significant chunk of their audience if they ever lost VEVO. As part of the deal, Google will invest in VEVO. Why not? Everyone wins.
VEVO to Remain With YouTube
The Financial Times and Billboard estimated back in February that Google's stake is estimated to be 7 percent in the company, worth $40-50 million.
18 of the top 100 subscribed channels on YouTube are VEVO-related, and if you look at the top 100 most-viewed YouTube channels, it's responsible for about a quarter of those. So, it made a lot of sense for VEVO and YouTube to make this deal. A recent report from ComScore showed VEVO gets 7 million uniques on its own site, tops in the study but a far cry from what it gets on YouTube. So taking their channel elsewhere (which was rumored to be Facebook at one time, but I don't think that would have worked out) obviously didn't make sense to VEVO. Even when you've got the goods (most of the popular music in the world), and clearly VEVO does, there's nothing that quite beats having the distribution of YouTube. Their departure would have been bad for both parties.
Good no one has to think about that now. It's the right move.