The music video website Vevo which was founded in the US by two record labels has launched in the UK. The music channel is now it n talks with numerous businesses regarding collaborations including Channel 4, Virgin Media and also ITV. Vevo has announced that it is keen to arrange numerous partnerships within the UK.
The company has partners including Universal Music and Sony, Vevo offers a similar service to that of MTV. Expectations are for the business to become successful and profitable within a year. The chief executive for the business Rio Caraeff has stated that Vevo has far exceeded the expectations which were previously set.
Numerous UK music businesses are considering becoming shareholders within the UK version of Vevo. These businesses include the popular record EMI which represented Katy Perry and Tinie Tempah and also Warner Music which already owns shares in MTV. A spokesperson for the business has stated they are not actively looking for investors but they will welcome investment from the correct type of investors.
The move to the UK for Vevo is part of an international roll out for the service. Vevo UK will be operated as a stand alone business and will operate from Tottenham Court Road in London, 25 people will be employed in total. The business will roll out to the Middle East and North Africa in the coming months.
Whilst the core business is to provide music videos to its users, the business generates revenue from advertising. Numerous big name businesses have already signed up to the advertising including Unilever, Maybelline, BT, Puma, Warner Brothers and Blackberry.
The prices paid for the advertising are considered relatively competitive with the prices being between £20,000 and £25,000; some larger campaigns have been sold between £200,000 and £300,000.
Vevo has entered the UK music video market whilst already holding some of the market share. Many viewers will recognise the business after they collaborated with the popular video website YouTube. Vevo are now hoping to expand their operations further and to capture a large audience within the UK. There may be