YouTube has never been afraid to invest large sums of cash in any of its partners, and it's ready to do it again. This time around, YouTube will be investing in the ever-present music video giant Vevo.
YouTube, which is owned by Google, is agreeing to purchase a minority stake in Vevo according to a recent All things D article. If the deal goes through, it will mark the second occasion in the past year that Google invested in a company that relies on YouTube for video distribution.
CNET reports that YouTube already owned a small stake in Vevo, but with its latest move, YouTube will own an even greater chunk of Vevo. If the investment goes through, nothing will change about how Vevo content will be distributed. As always, users will be able to see big label music videos on the Vevo channel of YouTube.
In a separate All Things D article, the popular tech publication reported in tremendous detail about how more people are watching videos on the web.
"YouTube views peaked in June 2012 at 18.3 billion, but have since declined to 12 billion on November 2012. comScore's Video Metrix measured total Web video views in June 2012 at 32.9 billion; fast-forward to November 2012 and total video views across the Web hit 40 billion. While YouTube lost about six billion views within that five-month period, the other half of Web video shot up by 13 billion," writes All Things D reporter Mo Al Adham. "As online video fragmentation increases in 2013, so will the need for a newcomer that aggregates YouTube and the second half of the Web's video under one roof."
In an effort to bolster content, YouTube has been on a mission to increase the number of high quality videos that it hosts. In the recent past, Google dumped millions of dollars into Machinima, a company best known for creating videos centered around video game culture. Here's one of our favorites.
YouTube will face competition in many arenas over the next years, especially because online video content is expected to become more heavily ingrained in how people spend their time on the internet. As online video proliferates, YouTube will be better off by having more high-quality content. As important as it is to have original content, the battle for online video dominance will ultimately be won with much more.