So... The deal has now expired. For those of you who don't know that YouTube and Vevo have been at war, now you know. YouTube, the online social and music video giant, has been at loggerheads with Vevo for the advertising it places on the streaming of its official music videos.
It seems that the two just cannot strike a deal in two areas. Firstly, the revenue share that YouTube splits with Vevo for the cost of advertising and secondly, how much Vevo receives per thousand advertising impressions.
Vevo, who was founded by Universal and Sony (backed by EMI) currently believes that because its site plays 'premium material' that YouTube should pay out more than it currently gets for the placement advertising.
At present, it is unclear as to how much Vevo actually gets for both the above named advertising forms. Other sources have stated that YouTube does usually pay out half to three-quarters the amount it receives from advertisers to its partners. However, what we do know is that Vevo has declared the sum that it has paid out to the artists it supports since 2009, with this being $200 million.
Whilst YouTube states that they "always hope to renew our relationships with valuable partners" surely you would think that it would want to keep Vevo on, it does generate YouTube a lot of money and is, quite frequently, the number one channel on YouTube. With this being said Vevo does get 98.2% of its unique viewers from YouTube and they are both businesses, in a tough climate for the (music) industry. Even still how can we be sure that if Vevo does get a higher cut of the cash that this may not be paid on to the artists themselves. Who knows.
With this war beginning on 11th August 2012 the 120 deal that YouTube had with Vevo has no expired. With close sources to the matter at hand it has been confirmed that the two are still far from reaching an agreement but when this does The Pro Audio Web Blog will be sure to report back.
So... The deal has now expired. For those of you who don't know that YouTube and Vevo have been at war, now you know. YouTube, the online social and music video giant, has been at loggerheads with Vevo for the advertising...