Over the past year, Vevo has made big moves as it plans to launch a subscription-video service based around its library of music videos. Now, however, that plans has been moved to the back burner. In an interview with Variety, Vevo CEO Erik Huggers said his team wants to focus on international expansion before it moves forward with other major plans. “We will switch it on when it’s right,” Huggers said of the subscription service.
After bringing Huggers on as CEO in 2015, VEVO spend 2016 undergoing a series of dramatic changes, include several rebranding efforts and a landmark deal with Warner Music. The music video network also reportedly sought a $500 million funding round, which it would have used to build its planned service.
Based off Huggers’ latest comments, the network’s priorities have now shifted. Huggers told Variety that, while 80% of Vevo’s audience is international, the company only has a local presence in 14 regions. It hopes to double or triple its presence around the globe first, and build its subscription-based platform later. “It’s completely still in the cards,” said Huggers of the service. “This is about timing and sequencing,”
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The biggest obstacle Vevo faces in developing its subscription service is the fact that the majority of its viewers access its video through YouTube, so by expanding itself internationally, the network can gather more users before attempting to sell a premium product. That logic would make sense, but there’s no guarantee Vevo can see the growth it craves. We’ll see how the network’s worldwide efforts play out in the coming months.