Vevo Announces $150 million in revenue, Averages $0.0043/Stream
-- Vevo pulled in $150 million in revenue in 2011 and expects to hit $1 billion soon, CEO Rio Caraeff said at the Dive Into Media conference. Caraeff made the rare financial disclosure at the Wall Street Journal's Dive Into D conference. The company had previously disclosed that it has paid out $100 million in its first 2 years.
The top-line figure ($150 million) looks great, but are people ready for the tiny amount of revenue earned by each video stream? Well, they'll need to get accustomed to the way Vevo makes money, the same way Spotify and other subscription services do. Gone are purchases with bigger chunks of revenue. Access (listening or viewing online) is monetized in little bits and pieces. Each single stream is worth almost nothing, but the numbers look better when people around the world are watching on a variety of platforms.
My estimate is that the average Vevo stream in 2011 generated $0.0043, or 0.43 cents. Vevo ended the year with 3.5 billion streams per month and ended 2010 with 2.3 billion views per month, according to figures the company released in December. That means the number of monthly streams grew from 1.75 billion to 3.5 billion at a compounded monthly growth rate of about 3.56 percent (that assumes a steady growth throughout the year, which might not have been the case). Given that starting point, end point and that growth rate, Vevo's total number of streams would have been about 34.9 billion in 2011. Divide 34.9 billion into $150 million and you get $0.0043 per stream.
Important note: That figure of 0.43 cents per stream is not a measure of the revenue generated from each sponsored stream. It is the average revenue generated for each stream whether or not the video had an advertisement. Through its partnership with YouTube, Vevo's videos are available in over 200 countries, according to the company's website. The company has not given specifics, but it's safe to say its views are not being monetized equally in all 200-plus countries. It currently has offices in New York, Los Angeles, Chicago, Detroit, San Francisco and London - that's six cities in just two different countries on two continents. Growth in advertising will take time. Average revenue per stream is sure to improve as the company expands the reach of its advertising partnerships.
Those figures do not represent what is paid out to artists, songwriters and rights holders. Vevo has not disclosed the percent of revenue it pays out for content. All we know is that $100 million has been paid out over the last 2 years while $150 million in revenue was collected in just 2011.
Vevo has done a great job creating a market for music videos that will attract top-name advertisers. Remember that videos were not being monetized just a few short years ago. Now online video is one of many growing revenue streams as well as an important promotional outlet. According to a report at TheWrap, Caraeff said he believes Vevo revenues could hit $1 billion annually within a "short period of time." ( AllThingsD)
Eventbrite Grows Across the Board
-- Eventbrite released some 2011 numbers that show tremendous growth on its ticketing platform. The number of listed events increased 106 percent to 458,207 from 222,353 while the number of tickets sold on the platform rose 89 percent to 20,789,509 from 11,004,743. The only decline anywhere in sight is the number of tickets sold per listed event, which dropped 8 percent to 45.3 from 49.5
New York, San Francisco, Chicago, London and Washington DC were usually ranked in Eventbrite's top 5 in various categories (most events, social events, food & wine events, tech events). New York was actually represented twice in the "food & wine" category - New York at #1 and the borough of Brooklyn at #4. Toronto ranked #5 in quantity of tech events.
That major markets with early adopters ranked highest on these lists is hardly a surprise. To get to the heart of the Eventbrite model, look at the geography it covered in 2011. The year's listings represented 14,950 cities (up from 9,370 in 2010) and 174 countries (up from 147 in 2010). Eventbrite's ability to ticket anything (food events, fundraisers, concerts, book readings, you name it) and anywhere makes it a truly innovative product. That's why venture capital firms, including Sequoia Capital, have backed the company to the tune of roughly $80 million. ( Eventbrite.com)
Royalty Collections Increased in 2011, Withstand Economic Downturn
-- Global royalty collections rose 5.5 percent in 2011, according to a just-released survey by the International Confederation of Societies of Authors and Composers (CISAC). It is the most recent data available for the survey of 232 authors' societies in 121 countries.
Gross collections for CISAC member societies in 2011 were €7.545 billion ($9.9 billion at the current conversion rate). Europe accounted for 61 percent of collections. Collections from public performances rose 7.5 percent and represented 73 percent of collections. Radio and television broadcasts was the largest royalty source, accounting for 39.8 percent of all collections and 56 percent of all performance revenue.
"Here is proof," said CISAC Director General Olivier Hinnewinkel, "that collective management is the solution for today and tomorrow, generating wealth for creators while withstanding economic changes and supporting digital music markets." ( Press release)