VEVO has announced a deal that may forecast its upcoming content plans. The multi-channel network best known for distributing music videos has acquired ShowYou, which specializes in social media aggregation and subscription-based video.
ShowYou launched in 2011 as a tool that lets its users bring together multiple social media feeds. In 2014, the company’s focus shifted, as it announced its place to introduce subscription-based channels from producers like Above Average and Indieflix. It is that part of ShowYou’s business that likely appeals to VEVO. TechCrunch, for example, suggests that VEVO could leverage ShowYou to launch a subscription service capable of competing with the likes of YouTube Red and Spotify Premium.
Such a service could make use of VEVO’s content library, which has expanded over the past few years. At the most recent Newfronts, VEVO–led by new CEO Erik Huggers–discussed several original programs created for and by music fans.
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VEVO’s acquisition of ShowYou comes one week after Andy Forssell, who moved from Hulu to become ShowYou’s CEO late in 2014, began a new position at Fullscreen. “With the streaming media segment still very much in its infancy I believe we have a tremendous leadership opportunity in front of us as we combine forces and become part of Vevo,” said Mark Hall, ShowYou’s Founder and President, in a release. “Showyou’s capabilities, combined with the breadth and scale of the Vevo platform, will enable us to create an exciting new class of products that should delight both music fans and artists.”
Financial terms of the acquisition were not disclosed.
