Vevo has always had access to Sony Music's and Universal Music's videos -- it was, after all, a collaboration between the two companies (vertical integration - owning a point of exchange). Now, thanks to a licensing deal it hashed out with the Warner Music Group, it can finally publish videos from all three major labels.
Veto plans to launch a video subscription service sometime in the future. Now that it's got all three labels on board, the service will likely be able to feature a bigger variety of artists and maximise their revenue streams ensuring that they maintain their dominance within the indutsry.
This announcement is good news for artists signed to Warner Music Group, as they have been missing out on potential royalties for years now. Vevo pulls in tons of traffic, and the advertising revenue is welcome by most acts. The website brings in around 17 billion views a month, and that number is expected to rise. While the amount earned for every ad displayed and clicked isn’t very high on video platforms, sites like Vevo benefit from scale, and when a popular music video brings in hundreds of millions of plays, everybody benefits. Nielsen figures show that video streaming services such as YouTube and Vevo accounted for more than 50 per cent of music streamed in 2015, or more than Spotify, Apple Music, Tidal and Google’s own Play Music combined.
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