Music videos service Vevo is reportedly looking for more funding, with the Financial Times claiming that it may add a new partner to its joint venture alongside UMG, Sony Music and Abu Dhabi Media Company. The piece suggests that the new funding is primarily to fuel Vevo’s global rollout, and pours cold water on rumours of an IPO.
The problem Vevo faces right now is uncertainty over its future distribution. Its partnership with YouTube expires later this year, so it’s looking to renegotiate the terms – the FT claims YouTube is taking a 30% share of Vevo’s ad revenues – while eyeing up alternatives such as Facebook.
As YouTube itself has shown, there is a voracious demand for online music videos. Vevo attracted 49.5m unique viewers in the US alone in April, watching 674m videos and spending an average of 57.9 minutes on the site according to comScore’s latest data. However, that same data shows unique viewers have fallen from a peak of 63m viewers in June 2011 – a statistic potential investors will be keen to get to the bottom of.