Vevo seeks cable channel
December 20, 2011
Vevo, the online music video venture of Sony Music, Vivendi’s Universal Music and Abu Dhabi Media Company, is looking at launching a cable channel and also eyeing internet-connected devices as a way into the living room.
Doug Morris, the Sony Music chief executive who launched it two years ago while running Universal, told the FT its revenues had risen from about $50 million in 2010 to about $150 million this year, and should hit $300 million in 2012.
Rio Caraeff, the Vevo chief executive, added: “We’re on track to reach profitability in the first half of next year.” Vevo has paid out half of its revenues to music companies, performers and songwriters, or $100 million to date.
Caraeff said he had talked to existing cable networks. “I don’t rule out having a traditional channel.” Vevo is laying the groundwork by developing more original shows. It produced 200 hours of programming this year by recording concerts and other events, and is looking to increase that next year with six to eight original shows, based on 30 pilots in production.