Rio Caraeff, CEO of music video hub Vevo, announced at the Dive Into Media Conference that “Hulu for music videos” is now profitable
Rio Caraeff, CEO of Vevo – think Hulu for music videos – announced Tuesday that his company generated $150 million in revenue in 2011, which, after a little math, reveals that Vevo is also profitable.
When pressed about future growth, Caraeff envisioned $1 billion in revenue within a "short period of time."
Caraeff was speaking with AllThingsD’s Ina Fried at the Dive Into Media Conference, and though the company has rarely offered specifics about its financials, Caraeff said he felt comfortable sharing the good news.
“We are making money, yes,” Caraeff said.
Past reports have suggested surging revenue at the company, but this is the company's first public admission of profitability.
Vevo is a joint venture involving three of the four major record labels — Universal Music Group, Sony Music Entertainment and EMI. Unlike UMG and Sony, co-owners with Abu Dhabi Media, EMI does not have an ownership stake.
Most of its audience comes from YouTube, which has a syndication deal with the company.
In an ironic twist, Edgar Bronfman Jr., the departing chairman of the only major not to partake in Vevo – Warner Music Group – spoke earlier in the day.
Vevo is expanding rapidly in 2012, pushing into the mobile sphere and launching an Xbox application.
"The future of the music business is allowing billions of people around the planet to access music experiences," Caraeff said.