youtube to renew distribution deal with vevo with 50 million investment moviescope

Youtube to renew distribution deal with Vevo with $50 million investment – movieScope

YouTube is set to own a stake of 10 percent in Vevo, which was launched jointly by music majors Universal Music –  part of Vivendi – and Sony Music in 2009, in return for an investment of an estimated $50 million.

The distribution agreement which has been in place for three years would also be renewed, allowing hundreds of millions of music clips and videos to remain on YouTube without illegally infringing on rights holders, AllThingsD reported.

Last year Google invested $35 million into Machinima, a video network aimed at the games industry that uses YouTube for distribution.

“While we don’t comment on individual negotiations, we always hope to renew our relationships with valuable partners, so we can continue to provide YouTube users with the best possible music experience,” YouTube said in a statement.