News - 11/12/2012

YouTube's VEVO deal expires: the struggle of renegotiation

YouTube's VEVO deal expires: the struggle of renegotiation

The contract regulating the partnership between VEVO and YouTube has come to an end: now both parts engaged in a difficult renegotiation of the original terms, to keep on working together.

According to insiders, VEVO video platform is asking for a substantial raise of the ad revenue share it is given by Google-owned YouTube. As VEVO is a premium partner, its slice currently is in the range between 51% and 75%, minus a 10% sales commission.
YouTube, on the other hand, is reportedly refusing to change current terms of the agreement with its partner, as it has historically been mutually beneficial for both companies.

The contract expired on December 9, but luckily it has a 120-day automatic extension that keeps it in valid and in effect through early April; this is giving both parts more time to negotiate and define a new scenario, if needed.
By the way, the renewal of the contract is not 100% sure; Sony Music boss Doug Morris - who helped found VEVO whilst running Universal Music - this summer said that VEVO would consider taking its content to other platform partners if YouTube didn't up its deal.

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