Google controlled YouTube and music video provider Vevo have agreed to a new multi-year deal.
According to reports, the new deal is worth somewhere north of $40 to $50 million. The new agreement will also see Google investing more money in the actual Vevo platform.
By signing a new multi-year deal, Google ensures that Vevo content doesn’t end up on Facebook, and it also gives the company the ability to build out its music video offering with Vevo’s help.
Vevo currently serves music videos to approximately 50.2 million YouTube visitors every single month.
In a statement to The Verge, a YouTube spokesperson explains:
“We made an investment in Vevo, we are excited by their future prospects and to provide YouTube users with the best possible music experience.”
Along with Google’s investment, Vevo has the support of its joint venture partners which include the Abu Dhabi Media Company, Universal Music, and Sony Music.
According to Billboard Vevo will use the new money it is receiving from Google to branch out with new international reach. Vevo executives also plan to keep on developing the platforms music programming to include more articles and new versions of popular songs.
Google and Vevo reportedly signed the new contract weeks ago, but only today did the search giant confirm the deal.
Vevo has a decent stranglehold on much of the YouTube music video market thanks to the large song catalogs that are already owned by Universal Music and Sony Music.
Along with serving music videos on YouTube, the team at Vevo also operates the Vevo.com music video platform which does not rely on YouTube video serving technology.
What features do you want Vevo and YouTube to add for music videos?