Vevo has signalled a major shift in its business model by announcing plans to phase out elements of its owned and operated platforms. Music Week can reveal that the consumer-facing website and app will be shuttered.
The video music service unveiled major upgrades just over a year ago, including a redesigned mobile app and multi-screen functionality for desktop. The company had also discussed launching a subscription service, though that now appears to be off the table.
While it has made efforts to bolster its own platforms in recent years, the vast majority of Vevo’s traffic comes from music videos it hosts on behalf of labels and syndicates to YouTube.
Vevo has now revealed that it will focus on content and its partnerships with platforms, including YouTube. Last summer then CEO Erik Huggers said Vevo was "always pursuing deals with other platforms” as well as looking at ways to "improve our relationship with YouTube".
In a statement today, the company said: “Vevo will remain focused on engaging the biggest audiences and pursuing growth opportunities. Our catalogue of premium music videos and original content will continue to reach a growing audience on YouTube and we are exploring ways to work with additional platforms to further expand access to Vevo’s content.
“We will continue to be the primary seller of Vevo-specific advertising on all distribution platforms – including the sponsorship of video premieres. Vevo offers unique selling propositions for buyers to purchase National, Local and Multi-Cultural audiences at scale, in brand-safe environments, with guaranteed reach and all of the addressability of IP-delivered inventory.”
The statement added: “Vevo will invest in original content including our flagship Dscvr and Lift emerging artist programs, as well as new formats that we plan to roll out shortly. Vevo’s unique programming and cross promotion of content helps artists at every stage of their careers to harness the power of music videos to reach new, global audiences.
“Connecting artists to new audiences, while helping tell their stories, and growing an advertising-based revenue stream that benefits all of our partners, are key considerations that drive how we develop and adapt our business. Belief in the power of the music videos will always remain at Vevo’s core.”
Vevo recently promoted JP Evangelista to head of content & programming.
CEO Erik Huggers left the company late last year. CFO Alan Price took over as interim CEO.
Vevo, which opened its European HQ in London last year, averages around 25 million unique viewers a day and attracts 25 billion viewers monthly - though most of that traffic is generated by YouTube.