Vevo has been defending its current ad-supported music-videos model, while reiterating its plans to move into the subscriptions market. “Because of the nature of video, we have an ability to monetise the advertising side of the house better than an audio-only service,” CEO Erik Huggers told MBW. “If I look at the traction we have as a company, it’s pretty damn impressive. Audio services, nine-out-of-ten times, are wallpaper – very important wallpaper – that play in the background. Video on the other hand is much more engaging and offers much more opportunity for advertisers and brands to cut through.” For now, Vevo is reported to be generating around $500m of revenues a year, while not yet turning a profit – as the profile notes, its licensing agreements with rightsholders plus the cut that YouTube takes for revenues generated on Vevo’s channels on that platform means the company’s margins are around 10%.

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