Image via: Vevo
The music video platform is following YouTube down the subscription route.
According to Vevo CEO Erik Huggers, the world’s leading music video platform is working on a paid subscription service.
“Today our business is all about ad-supported,” said Huggers at a conference in California yesterday (February 17). “So we think that one of the important things — we hear this throughout the industry — is the move toward subscription. That’s something we’re interested in.”
Vevo, which was launched in 2009 as a joint venture between Universal Music Group and Sony Music Entertainment, clocks up approximately 17 billion views a month, but according to Recode this isn’t reflected in advertising revenue.
During his interview, Huggers discussed the possibility of making Vevo into a Netflix-style store with human curation and original content to help it stand out. He was evasive when asked whether a pay model would mean exclusive content would be accessible only to those with a Vevo subscription or not, but he said that an ad-supported Vevo would continue.
“Just having an ad-supported model is not sustainable in the long run, but we do believe that having an ad model plus a pay model makes a ton of sense.”
Vevo isn’t the only music-focused service to go down the subscription route in recent years. SoundCloud has confirmed it will launch one, but hasn’t offered any details to what it will entail, while YouTube launched its own subscription service in 2015 complete with original programming.
Though Vevo is looking at the option of a paid model because ad revenue isn’t enough, there’s nothing to suggest it will create an immediate windfall for the service. Despite amassing over 20m paid users, Spotify has struggled to reach profitability.