Warner Music Group Closes Deal with Vadio (Not Vevo)
Warner Music Group (WMG) is reportedly close to finalizing a deal with Vevo that will allow its artists’ videos to appear on Vevo.com and the Vevo app (but not YouTube). In the meantime, WMG has pacted with lesser-known streaming video platform Vadio.
Vadio’s network of partners includes web destinations and apps that host more than 80 streaming music video channels, including Vizio, Radio.com and MetroLyrics.
The deal announced today will give Vadio and its distribution partners access to thousands of music videos from across WMG’s roster of artists.
“Vadio provides a smart service that gives partners quick and easy access to our artists’ content, within a ready-to-go video platform,” said Ron Wilcox, executive counsel, business affairs, strategic and digital initiative, for WMG, in a statement. “Vadio’s extensive distribution network of video channels expands the potential for Warner Music artists to connect with new fans, while creating new revenue streams on our artists’ behalf.”
There is definitely room for expansion. According to a year-end report from Nielsen, video streaming increased 101.9 percent year in 2015, year-over-year.
WMG is the first major music company to partner with Vadio.
Launched in 2012, the Portland, Oregon-based streaming platform has received a total of $10.77 million in equity funding over five rounds, according to CrunchBase. Investors include Rogue Venture Partners, Marker, Valence Ventures, Mucker Capital, Manatt Digital Media, Wieden+Kennedy and Amplify.LA, along with I.R.S. Records co-founder and former MCA Music Publishing president Jay Boberg, former Live Nation CEO and current Red Light Management COO Bruce Eskowitz, Victorious chairman Dean Gilbert. Lollapalooza co-founder and William Morris Endeavor music division head Marc Geiger and producer/director Michael Goldfine (“Camp Takota,” “The Outfield”).
“We pride ourselves on empowering new business models that create new revenue streams for content creators and media partners,” said Bryce Clemmer, CEO of Vadio, in a statement. “We believe video will get integrated into every digital media destination. Therefore we are making it possible for artists, brands, and media partners to deliver high quality videos by making Warner’s video library viewable across large scale consumer experiences.”