Vadio, a start-up that integrates music videos into online music streaming services, has raised $2 million in seed funding from individual investors including former media and entertainment executives, the company said Thursday.
Vadio pulls music videos from video-hosting services YouTube or Vevo and airs them when songs play on a radio station's online broadcast or on an online-only music service.
The idea is to turn listeners into viewers and command higher advertising revenue. Audio sees ad rates of $1 to $10 per thousand listeners, said Bryce Clemmer, Vadio’s chief executive. But a video ad’s rate could be $8 to $100. Even after Vadio’s cut, Clemmer expects music websites to see significant gains.
“Everything on the Internet that can be visualized is being visualized,” Clemmer said. “As a user, we’re already using both audio and video separately, so why can’t we just leverage the best of both worlds?”
Vadio has partnerships with music services in 15 countries, including
Clemmer said he sees Vadio as the Switzerland for the music industry, helping solve rights issues between record labels and music services.
“We’ve spent 2 ½ years building this technology out,” he said. “When you talk about delivering video to audiences around the world, it’s complex.”
For instance, Vadio may show lyrics of a song if the music video is not available for broadcast in a certain country. Vadio leaves securing ads up to its partners. The technology works across devices, whether in mobile apps or on regular websites.
Vadio located itself in Portland after joining advertising agency Wieden + Kennedy's Portland Incubator Experiment program. Clemmer said he met Wieden executives at events while he was attending Willamette University.
Vadio also participated in Amplify.LA, a similar program in Venice. Amplify’s team was key to landing investments from industry veterans such as former
Clemmer, who makes nearly weekly trips between Portland and Los Angeles, said he hopes another round of funding will allow for an office in Los Angeles.