Vevo’s Post-YouTube Strategies: Cable, Paid Subscription, Original Programming, More

Vevo

(from Billboard.biz, April 29, 2013) A lot of questions started to be raised following the surprise exit of Vevo’s sales chief, David Kohl. Advertisers and music industry partners are concerned what this leadership change will mean for the company that is solely profitable from advertising. The company made nearly $300 million in 2012. During the meantime, Vevo CEO Rio Caraeff has taken on the vacant position’s decision making responsibilities. Caraeff is looking at this change as an opportunity to expand beyond YouTube, Vevo’s main distributor. Some of their ideas include extending their services to online television companies like Xbox, Roku, and Apple TV, as well as Facebook. With all the talk with other services, sources expect Vevo to continue partnering with YouTube because it will continue to be a stable platform and provide a substantial amount of revenue. Vevo is also in talks of expanding to the cable/-satellite companies, apart from the decreased popularity of music videos. Creating partnerships with these companies could open doors for Vevo in terms of cable TV brand sponsorship as well as advertising revenue streams.

The recent changes that Vevo has encountered have also opened up the question of offering a paid subscription to their users. This option would eliminate the need to show 30-second advertisements to users prior to viewing Vevo’s videos. There has been no confirmation, but the option is definitely been considered by Caraeff and the rest of the Vevo team. Along with offering a paid subscription, Vevo would also have to provide some original content such as original shows. The company is spending about $10 million to create such programming. The extra funding that is used for this type of programming, as well as international expansion, is coming along with the help of YouTube and Guggenheim Partners. The exit of David Kohl seems to be a blessing in disguise for Vevo as it has opened up doors to new strategies. These strategies will hopefully lead Vevo to a bright future as an up and coming stand-alone brand.