How refreshing. Recently VEVO has revealed that they have paid out over $100 million to artists and labels and will still turn a profit in 2012.
VEVO is an online video service and celebrates its 2nd Birthday this month. Since December 2009 VEVO has paid out $100 million big ones in royalties to the musicians, labels and artists that provide the content.
The way VEVO make their money is not "rocket science". They provide free entertainment to the masses, and with more than 63 million unique users for the month of November have plenty of clout to charge advertisers for space on the website. VEVO is not yet profitable, however with the growing number of users Rio Caraeff, chief executive at VEVO believes it will be next year. The bigger the audience the higher the advertsing revenue.
And why are VEVO paying significant royalties to labels and musicians? Because it is owned by joint partners Universal and Sony. The money VEVO pays out in royalties comes at just the right time for the two labels who are experiencing plunging CD sales.
