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YouTube Pays $1-billion to Music Industry From Ads - Industry Says Not Enough

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  • YouTube Pays $1-billion to Music Industry From Ads - Industry Says Not Enough

    From another front in the music sales arena comes word that YouTube paid out more than $1-billion to the music industry from ad sales alone in the past 12-months. The article doesn't doesn't break down who got what.

    From CNet
    "YouTube, the music industry's No. 1 enemy earlier this year, said Tuesday it has paid more than $1 billion in advertising revenue to artists, labels and publishers in the last 12 months. The figure, released in a blog post by YouTube business chief Robert Kyncl, is part of the video giant's effort to mend fences with its critics in the music industry. Or at least, YouTube hopes to convince some of them that the massive amount of free listening on its site is a valuable complement to music subscriptions, the industry's main area of growth right now."

    Complete article at
    https://www.cnet.com/news/youtube-mu...s-advertising/


    In a follow-up to the article above, IFPI has responded that the numbers don't make sense and the amount YouTube paid is not enough

    From BBC
    "Google has issued more unexplained numbers on what it claims YouTube pays the music industry," said a spokesperson for the global music body, the IFPI. "The announcement gives little reason to celebrate, however. With 800 million music users worldwide, YouTube is generating revenues of just over $1 per user for the entire year."

    Complete article at
    http://www.bbc.com/news/entertainment-arts-38235834
    Last edited by Mandolin Picker; 12-07-2016, 03:36 PM. Reason: Updated to include response from IFPI
    The Mandolin Picker

    "Bless your hearts... and all your vital organs" - John Duffy

    "Got time to breath, got time for music!"- Briscoe Darling, Jr.

  • #2
    Well, as I see it, it's sort of like this....

    Let's say the entire youtube universe consisted of one hit song.... yours. And let's say you're part of JoeBlow Music Intl, the largest record company and publisher in the solar system. And let's say 5,000,000,000 people tacked on videos to your one song and posted it on youtube. You know, so now your record might be streaming on youtube with a video of funny cats, or playing along with home video of a skydiving grandma, etc Oh, and there's your own official video buried in there somewhere too.

    So, JoeBlow Music originally fronted you two million to make your record (cuz your Dad was famous) or two thousand dollars if you were nobody until your hit actually hit.

    Okay, every time your song plays somewhere on youtube, a Geico ad, or movie ad, or pork chops giveaway, or cellphone deal appear as well.

    Comes to the end of the year and youtube announces "we gave $1 billion in add revenue to the record companies" Okay. Let's see, Geico pays for the ads, youtube takes their cut and forwards a cut to the record companies. In this case, there's only one record company.... JoeBlow Music.

    JoeBlow Music is pretty okay with $1 billion, but of course still saying there should be much much much more. Which provides more static and conversation for the future.

    mmmm... well..... you realize that the $1billion was generated while your own composed hit record was streaming so you walk over to JoeBlow Music and ask what your own cut is.

    They then remind you that they advanced you two million dollars and your record hasn't made back its costs by a longshot and if anything, you still owe them money.

    "Yeah, but you just got a billion dollars from advertising from youtube", you exclaim.

    JoeBow Music replies that you aren't entitled to revenue from Geico ads etc. Which when you peruse your contract, you realize is correct.

    "But I own some of my own publishing too", you cry. Well... that scenario gets even worse.

    While the article doesn't delineate which record companies/publishers got what amounts, I think the big picture gets pretty easy to figure out from there.
    Last edited by bookumdano4; 12-06-2016, 05:43 PM.

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    • #3
      Originally posted by bookumdano4 View Post
      JoeBlow Music replies that you aren't entitled to revenue from Geico ads etc. Which when you peruse your contract, you realize is correct.
      Remember when the CD first came out, and it had a lower royalty rate because "Well you know, the price of digital always goes down, wouldn't be fair to pay you five years from now on what CDs cost today." After which of course they not only maintained the price, but later, raised it.

      There's stuff on which I played that's on YouTube (not the material I've posted), and I received a check for $479 from YouTube about a month ago.

      NOT.
      Simplicity, my new album project, is now streamable from my YouTube channel.

      Subscribe, like, and share the links!

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