What Happened to Vevo?

Summary

Vivo, launched in 2009 by Universal Music Group and Sony Music, was created to capitalize on the rise of YouTube and monetize music videos. Despite early success, it struggled with high operating costs and an unsustainable revenue model. Vivo's attempts to diversify and compete with YouTube failed, and after a series of security breaches and growing competition, it was absorbed by YouTube in 2018. Today, Vivo exists in the background as part of YouTube's music video offerings, its original goal of dominating the music video space ultimately unfulfilled.

Takeaways

• 😀 Vivo was created in 2008 by Universal Music Group and Sony Music Entertainment to address challenges in the music industry caused by piracy and illegal file-sharing platforms like Napster.
• 🎬 Vivo’s main goal was to monetize music videos by partnering with YouTube, offering a premium video experience while leveraging YouTube's massive reach.
• 💰 Despite initial success, Vivo struggled to make money as most of the revenue went to YouTube and the record labels, leaving Vivo with minimal profit.
• 📱 Vivo’s app was successful at first, even surpassing Facebook in video views by 2011, but they couldn't fully capitalize on the app's popularity.
• 🌍 Vivo expanded internationally, launching in countries like Mexico and several European markets, and secured content partnerships with major record labels.
• 📉 Vivo tried diversifying by creating additional content such as interviews and live streams, but this did not significantly boost its financial performance.
• 🔒 In 2018, Vivo was severely affected by security breaches, with hackers releasing sensitive data and deleting videos like the popular 'Despacito', further damaging the company’s reputation.
• 🎤 Vivo faced increased competition from YouTube, especially after the launch of YouTube Music in 2018, which further diminished its ability to stand out.
• 💼 Despite these challenges, Vivo’s merger with YouTube in 2018 allowed its videos to continue circulating under artist's official YouTube channels, consolidating the user experience.
• 🎥 Although Vivo no longer operates as an independent platform, its brand and logo can still be seen in music videos, but it is now largely absorbed by YouTube’s ecosystem.
• 📊 Vivo's legacy remains in the form of over 26 billion views per month across its music video content, but its aspirations of becoming a 'Hulu for music videos' never materialized.

Q & A

What was Vivo's primary goal when it was created in 2008?

Vivo was created to provide a monetized platform for music videos, aiming to help the music industry recover from the financial impact of illegal file-sharing and offer a premium music video experience on platforms like YouTube.

Why did Vivo's videos feature their logo in the bottom corner of music videos?

The Vivo logo appeared in the bottom corner of music videos because Vivo, as a distributor for major record labels, was responsible for hosting and distributing these videos, with a partnership agreement that led to this branding.

What was the key challenge Vivo faced with YouTube?

Vivo's key challenge with YouTube was that most of the revenue from ads went to YouTube and the record labels, leaving Vivo with minimal earnings despite hosting large-scale content on the platform.

How did Vivo initially try to diversify its revenue stream?

Vivo tried to diversify by creating additional content such as interviews and live-streamed concerts, and launching its own mobile app for music video streaming, which initially saw success.

What was the significance of the 'Despacito' video hack in 2018?

The 'Despacito' video hack, where hackers deleted the video and renamed many others, significantly hurt Vivo’s credibility and contributed to the company's eventual decline.

Why did Vivo attempt to create its own subscription service?

Vivo tried to create a subscription service, similar to Hulu, to reduce its reliance on YouTube and offer users a premium, ad-free experience for music videos, but this never materialized due to market resistance.

What role did Vivo play in the broader music video industry during its peak?

At its peak, Vivo played a major role by being the platform where a large percentage of music videos from top artists were hosted, benefiting from YouTube’s massive user base and generating substantial views.

What led to Vivo's merger with YouTube in 2018?

Vivo's merger with YouTube was prompted by its inability to compete with YouTube's dominance in music video streaming and its financial struggles after failed attempts to diversify and a series of damaging controversies.

What happened to Vivo's branding after the merger with YouTube?

After the merger, Vivo's branding largely disappeared from artist pages as YouTube consolidated artist channels, but Vivo's music videos continue to be hosted on YouTube and other platforms like Roku and Pluto TV.

How did Vivo's model of video distribution benefit the music industry?

Vivo’s model allowed major record labels to monetize their music videos on a large scale, generating revenue from ads that were directly sold to advertisers, ensuring a more controlled and profitable distribution of music content.