VEVO CEO Rio Caraeff announced today that the music video site has paid $200 million in advertising revenue back to artists since the company was founded in 2009. Caraeff explained the relationship between artists, advertisers, and consumers in a fireside chat at the Business Insider Ignition conference 2012 in New York City.
For the consumers, the goal is to create “quality programming in as many places as possible,” Caraeff said, whether it be on a desktop, Xbox, or a mobile device.
For marketers and artists, ”The audience that loves music should be treated and valued the same way as the audience that loves the Super Bowl,” Caraeff said, “and the revue should flow as such.”
VEVO aims to package the audience in a way that makes the content widely available to consumers and the audience widely available for the artists, while keeping the advertising opportunities scarce for the marketers. On average, a music video on VEVO shows 1 pre-roll ad for every 6 or seven minutes of content consumed.
Caraeff added that VEVO earns more revenue than any other company focused on music videos, like MTV or MySpace. The company paid out more money to artists this year than in the first two years combined.