MUMBAI: VEVO has received a strategic investment from Abu Dhabi Media Company. The announcement was made by Universal Music Group chairman & CEO Doug Morris and VEVO co-chairman/founder Rolf Schmidt-Holtz, Sony Music Entertainment CEO & VEVO co-chairman Rio Caraeff, VEVO president & CEO, ADMC chairman H.E. Mohamed Khalaf Al Mazroui and ADMC CEO Edward Borgerding. Terms of the agreement were not disclosed.
With this transaction, VEVO is now formed as an independent and fully funded entity with Universal Music Group (UMG), Sony Music Entertainment (SME) and Abu Dhabi Media Company (ADMC) as founding shareholders. Funding from the shareholders will enable VEVO to come to market with an attractive premium music offering for consumers and advertisers alike.
Launching in the United States and Canada later this year with a further international roadmap to be announced, VEVO will be a premium destination and syndication network for the very best in top-notch music video content that will leverage the massive existing traffic of YouTube.
"This global partnership flags Abu Dhabi Media Company’s commitment to establish a leading position in the digital media industry. It is part of an integrated approach to expanding the global digital presence and brand portfolio of Abu Dhabi Media Company, and it illustrates our partnering approach with innovators in digital media services and technologies," said Al Mazroui, on joining UMG and SME to create VEVO.
"It’s a credit to the music community, and to the global opportunity that VEVO represents, that we have been able to attract such a solid investment partner with the vision and track record of Abu Dhabi Media Company,” commented Caraeff. “Abu Dhabi Media Company brings to the venture important funding support and a team with enormous global media experience and insight, and we look forward to working with them to seize the many opportunities ahead of us."
"Consumer demand for music video entertainment is growing significantly today and is transforming the digital entertainment market and the music industry by fuelling new media business models. VEVO fits our vision and goals perfectly, as we are expanding our capabilities and continue to build the market for digital entertainment around the world. VEVO will redefine the way premium music video entertainment is consumed, created and shared in a global community of music audiences," said Borgerding.
"We’re now entering a new exciting phase in the digital media industry in the region and we’re determined to be at the forefront of it," added ADMC executive director Digital Group Ricky Ghai. "With VEVO there’s real opportunity for incredible growth, as both brand advertisers and consumers are looking for new premium video experiences online."