Online video channels are hemorrhaging ad revenue due to fees. Content distributors like YouTube suck up cash in exchange for letting you reach a big audience. So, where’s a provider like Vevo to go? Back to TV.
Vevo is headed to Apple TV, according to a report from the Wall Street Journal. It’s creating an app to work on the cable-cutters’ set-top box that will provide a variety of channels for music and original content. These channels will likely serve advertising, and even if Apple takes a cut of that in some deal, it will still serve to diversify what services host Vevo.
In order to not become dependent on one distributor, Vevo is trying to add more revenue sources. The company has existing apps on Roku and on Microsoft’s Xbox 360, and it’s reportedly also creating an app for Samsung’s smart TVs to be released at a later date. In May, Vevo saw 50.2 million unique viewers on its YouTube channel.
But while Vevo searches for independence, it seems YouTube wants to keep it around for as long as possible. The Google-owned property invested $50 million into Vevo, a 10 percent stake. The companies’ partnership was set to end, forcing Google to make the move before competitors could swoop in.
It seems it’s the next step in an attempt to make a relationship with a bigger cable provider, according to the Wall Street Journal. As of yet, Vevo has not been able to strike a deal to bring an emphasis on music videos back to mainstream television, but is continuing to pursue the option.