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VEVO Is a Worthless Piece of Crap That Nobody Wants to Buy…

Screen shot 2014-07-28 at 3.13.19 PM

Back in April, Bloomberg reported that Vevo’s owners were looking to sell the music video platform. Vevo is owned by Universal Music Group, Sony Music Entertainment, Google, and Abu Dhabi Media. They are said to be valuing the company at about $1 billion.

re/code reports that Vevo is trying to restructure the business before any attempted sale.  The company currently loses money and requires additional investments to keep afloat, which is not appealing to investors.

Vevo loses money because over 90 percent of revenue is split between the labels, Google, and publishers. Fifty five percent of revenue goes to Universal and Sony. So, even though Vevo made $250 million last year, the company lost money.

This is appealing for Vevo’s current owners, but not potential investors.

One of re/code’s sources said: “The thing is worth less than zero today. You’d have to pay someone to take it…”

Goldman Sachs has reportedly told the two labels that they will have to cut down their revenue share before they can sell Vevo.

 

Nina Ulloa covers breaking news, tech, and more. Follow her on Twitter: @nine_u

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Comments (22)
  1. TuneHunter

    VEVO is a suicidal activity invented under heavy intoxication!
    SLAVE on the lowest deck of YouTube pirate boat trying to survive on advertising breadcrumbs of the master.


    Reply
    1. TuneHunter

      I call it VEEVOO, OLE!
      Thank you for some numbers, it was secretive for couple years.


      Reply
  2. Anonymous

    oh come on, it’s just a loss leader, adapt boys, adapt!


    Reply
  3. hippydog

    Quote “VEVO Is a Worthless Piece of Crap ”

    I hope that was a quote from someone nina, otherwise you really like to push the envelope of defamation..


    Reply
    1. Paul Resnikoff

      That was my title. So I’ll take the heat on it.

      So far, it’s offering a nice tan. Hope it doesn’t burn.


      Reply
      1. hippydog

        The “pandora is gay” title completely trumps it anyways..
        ;-)


        Reply
        1. Nina Ulloa

          “Pandora HATES Gays”


          Reply
          1. hippydog

            oh… right..
            Freudian slip
            ;-)


            Reply
    2. mdti

      no no, it is objectively a piece of crap. it’s a fact, not an opinion.


      Reply
  4. Willis

    I’d buy it for a dollar.


    Reply
    1. nypbbob

      ebay? lol


      Reply
  5. nypbbob

    This has been story on VEVO for years now. The platform they offer simply doesn’t provide enough money for content owners. Hell, how is possible they could even become profitable with such a useless platform? I mean seriously, how can anyone survive on $0.01-$0.02 per video view? Hell, people even skip 99.9% ads before music video on You Tube supplied by VEVO, so they make even less money when a video streams on their platform.. Its a joke. We’ve read somewhere that a company called Funn is going to be paying MUCH more for content owners while not pissing off consumers with useless ads that seem to repeat over and over again. Hopefully they open soon… Artists and content owners need to be paid more money. And consumers need a platform without the customary nuisances. The usual is so old… Its annoying…


    Reply
    1. hippydog

      Quote “We’ve read somewhere that a company called Funn is going to be”

      I like how you snuck your ad in there..

      heres a hint ;-)
      maybe have a product ready to go BEFORE you try and stir up excitement about it..


      Reply
      1. Anonymous

        “maybe have a product ready to go BEFORE you try and stir up excitement about it”

        Haha, yeah — OR do it the right way. It’s not easy, to say the least, but it can be done.

        VIDescape just proved that!


        Reply
        1. Anonymous

          “maybe have a product ready to go BEFORE you try and stir up excitement about it”

          Haha, yeah — OR do it the right way. It’s not easy, to say the least, but it can be done.

          VIDescape just proved that!

          VIDescape?

          Have you been to their site?

          Really?

          So let me get this straight here, you are suggesting VIDescape are doing it right?

          That is doing it right?

          THAT?

          REALLY?

          wow

          Do you by chance build clay huts? In the middle of the City?

          I mean it’s one thing if you are out in the outback deep in the canyons in rough desolate terrain looking to erect a shelter for the night or a few, then a clay hut would be the right build, but otherwise a clay hut is not doing anything right, especially in the middle of a city.

          I’ll double down on VEVO long before i toss a chip in on VIDescape.


          Reply
          1. hippydog

            Quote “So let me get this straight here, you are suggesting VIDescape are doing it right?”

            Compared too?

            heck lets compare it to this “Funn” site (which i think has a valid concept..)
            problem is.. after a YEAR its still a concept.. They hyped it for almost a year and nada.. (thats not only bad business, its weird)

            hey, I’m not throwing stones.. years ago I had a great idea (I thought so.. still do in someways) but it never left the drawing board.. So I have a bit of an appreciation of some of the difficulty’s involved..

            I gotta give credit where its due.. Tom has done more in 2 weeks with Videscape then I was able to accomplish in 6 months..


            Reply
            1. Anonymous

              Okay, so let’s pull the Bar way down and use something lame to compare it to so that it can look amazing.

              Why compare it to anything? Just look at it at face value. Place the Bar really high, the Bar of the goal the expectation the desire, and compare it to that.

              Not trying to rain on his parade or anything, just saying!


              Reply
          2. Anonymous

            “you are suggesting VIDescape are doing it right?”

            Um, you don’t know what we’re discussing here (can you get away with hyping a product before it’s ready?)…

            As for VIDescape — they found a good name and managed to launch a pretty good Beta (less cluttered than Yahoo’s Screen, for instance) in a few weeks.

            Like I said elsewhere, there’s plenty room for improvement though (and a new problem was added today: You can’t visit the site if you use an add-blocker. That’s obviously a no-no).

            But all in all, it’s a good beta.


            Reply
            1. Tom Oswald

              I’ve been following these comments and would like to interject a few things; firstly thank you to those who have spoken positively about videscape and our achievement. Now to address everything else.

              What you see there is currently the foundations of the site, you can play, upload and browse videos, this is only the start to the site the following is to come in the next 8-12 weeks:

              1) YouTube content importer for transferring your videos hassle free
              2) Play listing (both private and public)
              3) An intelligent Algorithm for related videos
              4) Earnings/Payment system with active notifications
              5) User notification system
              6) In-house Transcoder thus reducing platform costs further
              7) Batch upload capabilities
              8) Additional security and further refinement on stability
              9) Audio Upload
              10) Audio ripping from Video uploads
              11) Generic videos consisting of visualization to make sharing and streaming audio only more user and consumer visually appealing
              12) Audio and product commerce system (sell your music/merchandise/products right underneath the relevant videos)
              13) Revised payment gateway to reduce transaction charges with all profit increases passed onto the content creator
              14) Content ID system
              15) Integration of Event and Gig Listings (Buy tickets right underneath band videos)
              16) Full Marketplace for multiple vendors
              17) Intelligent ‘Suggestions’ Algorithm

              We wanted to stage the platform into the market under a beta platform so 1) people could get used to the features as they are added rather than all at once and 2) as you can imagine there are a lot of bugs which need to be addressed after each stage and these are a hell of aloy easier to deal with in sections rather than on the whole platform at once

              Finally, the ad-blocker software; we found very rapidly that between 60-70% of the users of the site use adblocker software. The money that is paid to the content creators (upto 1.5c per stream) comes from advertising. We did sit down and discuss this issue in depth and it was a difficult decision to make. However we are not backed by google and do not have endlessly deep pockets and do not want to take the bandwidth hit that people using adblocker software cause us. This is an independent project that is there to support independents, the risk that has gone into this is ours and we wish to pay the people that create the content for the site as high as possible and this can only be done by using the adblocker software. The site isn’t crammed with adverts, there are two, and if you wish to support the music industry and the content creators that are out there today you won’t mind turning off your adblocker software to use our site

              I do apologise for the long reply and I hope you find it useful


              Reply
              1. Anonymous

                Hi Tom,
                Thank you for your reply!

                I have addressed the vidEscape pros and cons, as I see them, in the comment section of another DMN-story:

                Please see VEVO Sucks for Indie Artists. So We Created Rormix… if you can find the time. You must be seriously busy right now.


                Reply
                1. Tom Oswald

                  Hello, yes time is in very short supply at the moment! I have addressed your comments on the relevant page as you have directed.

                  I would like to point out a term I have phrased badly, audio ripping is not to enable people to download free music or content it’s to allow a content creator to upload a video and the track of the video automatically gets converted into an mp3 in the server backend and this will be then sold right under the video assuming the artists wishes to do so


                  Reply
                  1. Anonymous

                    Thank you again — good to hear this is what you meant by audio ripping.


                    Reply

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