It's come to light that music video website Vevo is going up for sale. Before they do that, they have to make the site worth buying. Vevo makes about $350 million a year, but still loses money. Huh?! Somehow Vevo is spending more than $350 million a year in licensing and internal costs. Even worse, would YOU want to buy Vevo? Don't all step forward at once.
Vevo has become a site that people are aware of but rarely visit. It's owned and run by Universal Music, Sony Music, Abu Dhabi Media and Google. There are people interested, says Peter Kafka of Re/code, but before the deals start rolling the Vevo peeps have to figure out how to make more than they spend.
Kafka said “Vevo generates real money from the ads it shows before its clips — last year it pulled in $250 million — but the music labels, music publishers and Google carve up more than 90 percent of that gross, leaving the company little money to work with.”
They should also find a way to make the site more interesting and usable. It's not an easy thing to do, think of all of the web sites that have music videos and count how many of them do it well and I'll bet you'll have some fingers left over.
So if you have your own videos on Vevo or peruse the site with any regularity keep watching this one to see how it plays out by the end of the year.