Google is reportedly going to get stake near to 10 per cent in Vevo, a joint venture music video website that is operated by Sony Music Entertainment, Universal Music Group and Abu Dhabi Media.
Google, which also owns YouTube, world’s largest video sharing website, is said to be Vevo’s rival. The deal between the two entities will make Vevo distribute a portion of its videos through YouTube. Vevo joined hands with Facebook and Viacom last year, but it looks like the deal with Google is better and lucrative. The Guardian quoted a YouTube spokesperson as saying about the development:
“While we don’t comment on individual negotiations, we always hope to renew our relationships with valuable partners so we can continue to provide YouTube users with the best possible music experience.”
In the present era, the demand of physical music CDs has declined considerably and more and more people are relying on the internet to listen or download music. This has made all the companies in the industry ensure their presence on the internet along with offering better services than their rivals.
Google’s association with Vevo is critical for both sides, and for the other stakeholders, because it brings a great opportunity to secure revenue. So, the not-so-great relations between these entities could be ignored in the light of securing better financial interest. Meanwhile, both The Guardian and AllThingsD have reported that the deal between Google and Vevo is certainly on the cards, but it has not yet been signed and there is a slight doubt that it might get derailed. However, no concrete information has yet been reported in this regard.
Photo: Newmediarockstars
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