Vevo, the joint venture between Universal and YouTube which is aiming to be a Hulu for music videos is starting to take shape. Although many questions remain, the site does at least have someone overseeing everything. Step forward Rio Caraeff.
Hulu For Music Videos?
December 2008 saw the first talk emerge of a new Web site purely for music videos to be launched at some time in the future, by someone or other, with content supplied by who knows who. This move was rumored in light of YouTube having failed to tie up new deals with the four major record labels.
The problem at the time was that the majors wanted more money per music video play while Google (owner of YouTube) were resistant due to advertising revenues taking a nosedive. The solution? How about a Hulu for music videos-type site which aired music videos and nothing but music videos.
From Rumors To Reality
In April, the rumors became reality when Universal Music and YouTube jointly announced plans for such a site. Its name will be Vevo and it is expected to be launched later this year.
However, many questions remain, including who the team in charge will be, how the advertising will work, whether advertisers will be interested and whether viewers will be happy to move from YouTube to a new domain. There’s also the question of whether the other three major record labels, EMI, Sony, and Warners will sign on the dotted line.
The Man In Charge
The first question can at least be partly answered, with the news that Rio Caraeff has been put in charge of turning Vevo from an idea to a reality. Media Memo claims Caraeff is currently running the venture on an interim basis while still maintaining his job as executive vice president of UMG’s eLabs. Sources suggest he’s 99.9 percent guaranteed of the full-time job when the site is launched.
Caraeff has never run a start-up before but does know the business of digital music having worked in that field for the Universal Music Group since 2005. But the task ahead is a huge one.
The Task Ahead
Caraeff needs to assemble a team of between 25 and 50 people capable of making Vevo a moneymaking venture. Revenue is the sole reason for the site to exist and so securing advertisers is going to be essential for Vevo to be considered a success.
Can Vevo be all it aims to be? Will the huge number of viewers who currently subscribe and watch the Universal YouTube channel be happy to move across to the new site? Will Caraeff’s team be able to entice big-name, high-paying advertisers to the site more successfully than YouTube seems to be doing?
The coming months are likely to answer many of these questions but for now, Vevo remains a pipe dream.
