Job losses as Southern Cross Austereo and Vevo part ways
Vevo and Southern Cross Austereo have parted ways, with the US content platform cancelling its local licensing agreement in a global rethink of its partnerships.
Southern Cross Austereo secured an agreement with Vevo for exclusive rights to its content and inventory in Australia in August 2016 with the broadcaster announcing a programmatic offering for the service in September last year.
The decision by Vevo has seen SCA redeploying sales staff within the organisation with some choosing to take redundancies.
Vevo, a joint venture between Universal Music Group, Sony Music Entertainment and Warner Music Group, has been problematic for its Australian partners with SCA taking over the rights from the previous licensee Authentic Entertainment after it hit financial difficulties in 2016.
In a statement to Mumbrella, an SCA spokesperson said: “Unfortunately, SCA have been advised by Vevo that they will not be renewing our agreement beyond its current term, which ends at the end of February 2018.
“This is as a result of a global decision made by Vevo and it affects all of Vevo’s international partners, including SCA. It was a decision that was unfortunately out of our control.
“The staff directly impacted were offered re-deployment. Those that chose not to accept the offer were made redundant and a number of others have taken up new jobs within SCA.”
Google’s YouTube – The new licence holders of VIVO will be a great distribution and sales solution for the video giant.
YouTube are offering a new line-up of customized channels for the Sony, Warner, Universal music channels as well.
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