Guvera, the on-demand service that recently launched here in the US, has gotten some early traction with big national advertisers who like the streaming services idea of building streaming channels of music around a brand.
According to a report last week, advertisers in the US include Victoria’s Secret, Microsoft, Sprint, Mastercard, Geico and H&M, all of whom have dedicated channels. Guvera Founder Claes Loberg explains that listeners are “brand loyal, taking the time to select a brand and interact with the individual channels to download their free music.” They are logging long periods of sponsor engagement double digit click through rates as well.
Guvera hails from Australia, started streaming in the US in March and is still working out licensing deals with some of the record companies. Their song library currently includes EMI Music Group’s labels; EMI, Virgin, Capitol Music, Bluenote, Mute and Domino. The website informs us that they’re hoping to add Universal Music Group, IODA and several independent labels in June and July. They are reporting 75,000 users across Australia and the US, with roughly 40,000 coming from Down Under. About 3-5,000 are joining weekly.
I like the approach this station is taking. They set out to distinguish their ad model from the beginning, emphasizing that they weren’t selling impressions but were focused on brand engagement by working with brands to create channel sponsorships. Apparently, some big brands think it sounds like a good idea as well.
Vevo, the music video site powered by Youtube launches today. The site will feature videos from three of the four major record labels – Sony, Universal and EMI. Warner Music Group is the only one not working with Vevo, although they are working with YouTube.
Professionally produced music videos are the most popular content viewed on YouTube. Now Vevo will offer music fans music video content, along with an online music store offering music downloads, merchandise created by artists, concert tickets and more. In the future a music video subscription service, offering both short videos as well as streamed concerts is likely to be added.
Vevo has announced a pre-launch partnership with CBS Interactive and will offer extensive music programming from the vaults of the CBS Interactive Music Group’s properties including Last.fm and more than 90 CBS RADIO music stations beginning next year. “Last.fm and CBS RADIO’s stations are producing a tremendous amount of unique video content every day – from long form concerts such as the “Live on Letterman” webcast series and annual special events, to acoustic performances and one on one interviews,” says David Goodman, President of CBS Interactive Music Group. “We’re excited to be part of the next generation of music video services, and look forward to all the benefits that go along with Vevo’s massive audience and reach including increased awareness of our efforts in this space to new revenue generating opportunities.”
The combination of high quality video along with lyrics and access to lots of information on favorite artists is expected to appeal to advertisers and command top dollars. The site will launch with partnerships with AT&T, McDonalds and Mastercard.