Vevo Revenue Up 30 Percent in 2017 As it Eyes Profitability: Report
Vevo's revenue jumped 30 percent to $650 million in 2017, up from $500 million the year prior, according to a report in the Financial Times. The bump means that the video streaming company broke even in the past year, with an eye towards turning a profit in 2018.
According to the report, Vevo racked up 25 billion views per month on its videos this past year, or about 300 billion views total, and attributed its increased revenue to an influx of advertising dollars from YouTube spurred by the controversy surrounding ads being placed against videos with graphic content, which erupted last spring. Major brands such as AT&T, Verizon, PepsiCo and Walmart either pulled or threatened to pull their advertising from the service at the time, prompting YouTube CEO Susan Wojcicki to issue an apology.
The news also comes three weeks after Vevo CEO Erik Huggers announced he would be stepping down from the company he has led since 2015, with CFO Alan Price taking over as interim CEO. Huggers had been leading a transformation of the service, which is co-owned by a coalition of major record labels and tech companies, introducing an artists to watch series and building towards a planned subscription service, along the lines of what YouTube had rolled out with YouTube Red, to muted effect. Those subscription plans have now been discarded, according to the report.
Unsurprisingly, given its pop-culture (and Hot 100) dominance this year, Luis Fonsi and Daddy Yankee's video for "Despacito" was the most-viewed video globally (4.3 billion views) on Vevo in 2017, and the second-most-viewed in the United States (289.9 million). Post Malone's "Congratulations," feat. Quavo, was the most-viewed Vevo video in the U.S. last year, with 309.4 million views.