The CEO of online music video platform Vevo, Erik Huggers, announced during the Code Media conference in the United States that the company intends to launch a premium subscription version, following the footsteps of YouTube Red (Google), but will maintain “a dual revenue stream”.
“There will be free Vevo, yes, but we think just having an ad-supported model is not sustainable in the long run”, said Huggers. “You hear throughout the industry about the move towards subscription, a more premium product. It’s very much something we’re interested in and working towards.” Vevo had record profits through their advertising model in 2015.
Vevo (a joint-venture between Universal Music, Sony Music, Abu Dhabi Media and Google) has 18 billion views per month worldwide and represents 38% of the monthly traffic of YouTube, website third on the Internet rankings of the main countries of Latin America. It had already given evidence of this migration when it acquired the monetized online video platform ShowYou in December 2015.