YouTube the video sharing website, owned by Google group, announced that it has made an investment in Vevo, an online platform that broadcasts music and video content, which is estimated at 50 million dollars.
Vevo is the leading provider of content for YouTube. The partnership of the two companies dates back to 2009 and ended in December 2012, but was renewed temporarily while YouTube and Vevo representatives have negotiated an extension of the contract.
Vevo is headquartered in New York, the majority shareholder of the company is Sony Music Entertainment and Universal Music Group, while a minority shareholder is the Abu Dhabi Media.
A Google spokeswoman said that the search engine giant made an investment in Vevo because the company is pleased with their prospects to provide users with the best YouTube music experience possible. On the other hand, Vevo officials confirmed the YouTube investment, but refused to provide further information.
According to Billboard, YouTube holds about a 7% stake in the Vevo platform, in which it has invested an amount between 40 and 50 million dollars.
Vevo offers music videos on its own site, but have many channels on YouTube, in which it shows clips of well-known artists, including Rihanna, Adele and Lil Wayne.
Vevo was the most important partner of YouTube in the United States in May, attracting 50 million unique users. They spent on average 36.1 minutes on Vevo channel on YouTube, according to research firm ComScore.
YouTube became one of the most important sources of information in the world, according to a survey by the American Pew Research Center published in the United States in July 2012. This study showed that topical subjects were the most sought on YouTube in a period of 15 months, between 2011 and 2012.
YouTube claims that more than 72 hours of video are posted on the site every minute, and that over four billion videos are watched every day.
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