Fresh from the exit of its CEO Erik Huggers, Vevo has been telling the Financial Times about its growth in 2017.
The music-videos service saw its revenues increase from $500m in 2016 to $650m in 2017 – growth of 30%. Vevo added that it was generating 25bn monthly video views by the end of 2017, and that it broke even for the year, and expects to be profitable early in 2018.
There’s a fun quote from an anonymous label executive on Vevo’s decision to axe plans for a subscription service: “It was either make a huge bet and invest hundreds of millions in original content that people will pay for, or treat it like a premium advertising sales force.”
Their claim that music video is a “massive opportunity” will be tested in 2018 – and not just by Vevo. Facebook’s music strategy is coming into focus, while YouTube is expected to make video a key part of its upcoming ‘Remix’ streaming service – just as Vevo’s distribution deal with YouTube comes up for renewal.