Music video and entertainment platform Vevo has recently acquired Showyou, a subscription-based video streaming platform that helps users find (and pay for) video content. The move is a direct attempt to compete with YouTube’s RED subscription service.
Details of the deal haven’t been formally announced, though reports indicate that seven of the nine members of the Showyou tech team are immediately joining Vevo. Employees moving across to Vevo’s San Francisco team include founder and president Mark Hall. ”With the streaming media segment still very much in its infancy, I believe we have a tremendous leadership opportunity in front of us as we combine forces and become part of Vevo,” Hall remarked.
Vevo is a personalized video platform created by Sony Music Entertainment, Universal Music Group and Abu Dhabi Media that seeks joint ventures with other sites to provide them with music video content. Ironically, Vevo owes most of its traffic to YouTube, though it also aims to fix endless content problems and valuations issues created by YouTube.
Indeed, the majority of people currently enjoy Vevo content through YouTube, an experience that starts when a user searches for a particular artist or song name. The first results are usually a Vevo video. Enter Showyou, which offers tools and services that allow creators and viewers to connect through subscription and transactional video-on-demand. Showyou’s introduction of a subscription model last year, allowing users to pay for channels on a monthly or yearly basis, is what attracted Vevo.
Looking forward, the combined forces of Vevo’s and Showyou’s teams will be part of a growing effort to reduce the reliance on YouTube. In short, Vevo views this acquisition as a way to tap into monetization opportunities, and shift away from a service that is entirely ad- and funding-supported. “Showyou’s capabilities, combined with the breadth and scale of the Vevo platform, will enable us to create an exciting new class of products that should delight both music fans and artists,” said Erik Huggers, president and CEO of Vevo.
Recently, Vevo took its first step in that direction with the launch of a new, completely re-designed iOS app.