Google is keeping music video and content distributor Vevo as a YouTube partner for an undisclosed sum and a 7 percent stake, Billboard reported.
The music video distributor, which is owned by Universal Music, Sony Music Entertainment and the Abu Dhabi Media Group, is a significant player on the video-streaming site, garnering around 50.2 million viewers per month.
YouTube said in a statement: “We made an investment in Vevo. We are excited by their future prospects and to provide YouTube users with the best possible music experience.”
The previous agreement between YouTube and Vevo expired in April and it had been rumored as early as February that Google would invest $50 million in the distributor. One of the big issues that threatened the partnership between YouTube and Vevo was how the two would share ad revenue. Without that partnership, YouTube would have lost a significant amount of viewers, and Vevo’s viewership largely comes from YouTube users.
Since launching in 2009, Vevo has gone beyond being the dominant distributor of music video and began producing their own original programming under the Vevo TV. Original content includes YouTube comedian David So’s “The Comment Show” and “Sara Bareilles Makes A Record.”
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