Vevo has only today launched its Australian version in partnership with MCM Entertainment Group, but is already exploring new platforms and monetisation strategies locally.
Vevo will become part of MCM Media's Digital Entertainment Network (DEN) – an online video platform featuring entertainment and music content that is advertiser funded.
Globally it generates 3.3 billion video streams each month with Australia already having 5.5 million users generating 47 million streams per month thanks to the YouTube channel.
“All the major record labels aside from Warner are on Vevo,” said MCM Media CEO, Simon Joyce. “You can find 85% of the world's music videos on the site. Combine this with our current offerings of Take40.com and TheHotHits.com and it cements MCM Media as the market leader in the digital music space.”
The company is also exploring expansion in other directions. IPTV portals are being looked at closely, possibly in partnerships with TV manufacturers, while a deal has been inked for a Vevo portal to launch on Microsoft Xbox 360 at the end of the month.
While Vevo will not get an Australian domain, the website will be geo-targeted so that all Australian visitors will have access to Australian content and advertising. Currently it's an advertising funded model but there is potential in the future for that to change.
“We are considering a subscription service,” said Nic Jones, Senior Vice President International at Vevo. “The research is going ahead right now and we're taking it quite seriously. But we are very comfortable at the moment with the advertising strategy in place and what MCM Media offers.”
Joyce told AdNews it would be easy for advertisers to buy into Vevo by either acquiring direct sponsorship or a share across the DEN. In 2011, DEN generated more than 68 million video and audio streams which will grow rapidly in 2012 thanks to the addition of Vevo.
When questioned about how the Australian market had embraced online video advertising, Joyce was excited but admitted more work needed to be done. “We're at the tipping point. Agencies need to make online video advertising a serious part of their strategy and I think creatives need to get more out of it. They're not doing enough at this stage but I'm sure it will change soon.”
Vevo Australia is available from today as a website as well as on iPhone, Windows Phone 7, BlackBerry Playbook and Android.
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