Digital media may block MTV’s return to music – CNBC
Video hosting service Vevo, which puts its music videos on YouTube, said it gets 17.2 billion global monthly views on its content. Vevo — which is owned by Universal Music Group, Sony Music Entertainment, Google and Abu Dhabi Media — was created to standardize distribution of music videos and online revenue opportunities.
“If you think of the appetite and the tonnage, it’s almost like music videos never went away,” said Andrea Zapata, vice president of global research and analytics for Vevo. “The appetite was always there. It’s just moved to digital.”
Eighteen of the 24 YouTube videos that have amassed more than 1 billion views belong to Vevo’s on-demand music videos. For comparison, the company’s catalog only makes up .001 percent of YouTube’s content. Nielsen data also shows that Vevo reaches more people in the U.S. under 50 than an entire day’s worth of programming on NBC, CBS or ABC.
Zapata credits TV’s aversion to music videos to the fact that as online video content rose, traditional networks found short-form content less appealing. Growing levels of music piracy and poor compensation models also worked against music videos until systems like Vevo were created, she said.
“In short, traditional TV fell behind and was never able to catch up with the needs of a younger, web-savvy demographic,” Zapata said.
Since it is privately owned, Vevo does not disclose revenue. A spokesperson said it had record revenues in 2015, and has had a strong start in 2016. (However, Recode previously reported that because of revenue splitting with YouTube, Vevo actually operates on a loss.)