Google has renewed its contract with Vevo, the music video content provider, to retain the supreme flow of unique visitors to its video site YouTube, according to a recent post on Billboard.
Google has scored the highest number of unique visitors in March with 153.9 million viewers through its YouTube operations and Vevo ranks third in the list with around 52 million unique visitors as cited by ComScore.
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Vevo is the third most watched video content site in US and is owned by Universal Music Group, Sony Music, and the Abu Dhabi Media Co. The recent tie up with the Vevo can be broadly viewed as a move from Google’s end to increase the popularity of its video streaming service against its most potential opponent Facebook.
"We made an investment in Vevo," said the YouTube owner, Google in a statement to The Verge. "We are excited by their future prospects and to provide YouTube users with the best possible music experience."
The financial details and the terms of the agreement have not been disclosed as of now by any of the collaborators. However according to Billboard sources the deal is somewhere estimated between £2638- 32975000 ($40 –50 million).
Agreement between YouTube and Vevo ended back in April and Google was reportedly negotiating deals with its former music video content provider.
In fact Google was rumored to be looking forward to acquire an equity stake in Vevo that worth somewhere around £ 659500000 ($ 1 billion). as claimed by New York Post.
It was believed that Facebook was also making a move towards Vevo at the same time. The renewal of the contract has settled down all the confusions going around on the next probable partner for Vevo.
Vevo for long has wanted to mark its presence across the world and to raise some funds as well and no other platform could have suited better than Google to accomplish its goals as cited by CNet.
On Google’s part this is not something new, as the California based web giant had always been keen in increasing the user base for YouTube through million worth investments. Earlier Google had invested £131900000 ($200 million) on the tie up with Premium channel partners to promote YouTube content in rest of its channels reports venturebeat.
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