Google’s YouTube has invested between $40m and $50m in online music video hub Vevo, renewing its partnership with video music site that offers some of the most popular content on YouTube.
The partnership renewal would allow YouTube to feature Vevo’s music videos on its site, with the two firms sharing revenue generated through ads.
YouTube’s original partnership with Vevo was due to conclude in December 2013.
YouTube said in a statement that the company has invested in VEVO.
"We are excited by their future prospects and to provide YouTube users with the best possible music experience," the video sharing site said.
The music service, which is a joint venture owned by Universal Music Group, Sony Music Entertainment and Abu Dhabi Media, also streams music videos on its own website.
Claimed to be the most popular partner channel on YouTube in the US in May 2013 with 50 million viewers, Vevo also owns a co-branded channel on YouTube featuring music videos from popular artists, including Rihanna, Adele and Lil Wayne.
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YouTube reports that about one billion users watch more than six billion hours of videos on its site per month and had advised its advertisers to follow the audience in the age group of 18 to 34 years, who form part of its ‘Generation C’ consumers.
