YouTube is planning on making an investment into VEVO, the music video service owned by Universal Music and Sony Music, best known for its operations within the YouTube platform. According to All Things D, the investment will be to the tune of $35 million, and comes as YouTube renegotiates its partnership with VEVO.
There has been much speculation that VEVO, which has been busy expanding its own online and app-based video platforms, might pull out of its YouTube partnership, which would take a significant amount of both content and revenue away from the Google-owned business. In reality VEVO, which still relies on YouTube for a lot of its traffic, is unlikely to end its partnership with the Google video site at this stage, though an equity relationship would provide longer-term guarantees for YouTube.
Although initially seeing itself very much as a platform and ad sales network, rather than as a commissioner or owner of content, YouTube began pumping its own money into content creation a couple of years back, initially in the US and subsequently beyond, and last year put money into Machinima, a web video network aimed at gamers.