YouTube's $1 Billion Royalties Are Not Enough, Says Music Industry (bbc.com)
YouTube said Tuesday that it has paid the music industry over one billion dollars in advertising revenue in the past 12 months. The music industry thinks that sum is not enough. From a report on 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. "This pales in comparison to the revenue generated by other services, ranging from Apple to Deezer to Spotify. For example, in 2015 Spotify alone paid record labels some $2bn, equivalent to an estimated $18 per user." In his blog post, Mr Kyncl conceded that the current model was not perfect, arguing: "There is a lot of work that must be done by YouTube and the industry as a whole. "But we are excited to see the momentum," he added.
Cut out the greedy RIAA pigs and give the money straight to the artist.
*holds pinky to mouth*
Any way they can BOTH lose?
Comparing YouTube to Spotify.. seriously?
How many of Spotify's users are there for music? I'm betting its close to 100%.
How many of YouTube's users are there for music?
If you don't pay me 100 billion dollars I will....
If you give money to the recording industry via bands with recording contracts. You are part of the problem.
Giving those assholes money enables them to feed their greed.
I'm a good cook. I'm a fantastic eater. - Steven Brust
Many Youtube users never use it for music covered by the RIAA so it is not fair to compare it to services like Spotify that are primarily for music.
How much is enough? We know greed is Unlimited. So how much do they think they rightfully deserve? Just looking for an indicator of how much I should be laughing.
There is a crucial difference here - all of Spotify users are there for the music, while only a (small) percentage of Youtube users are using it to listen to music. If we take the actual count of users who use Youtube to listen to the music, the royalty per year would be quite a bit more. Of course MPAA is probably next in line for the handout, so Youtube should be careful there.
Of course it isn't going to be enough, because google devalues ads to the point of uselessness. One billion ad impressions through adsense is like 0.01CPM ($10,000) when it should be closer to $3.00. Youtube CPM is supposedly 7.80 but put that in the context of how people listen to music. People create a playlist, and then shitheel recording companies delete or block "unauthorized" uses instead of monetizing them, which means people keep uploading the track in ways that neither get monetized or credited correctly. Nobody wants to listen to a track list get interrupted by 30 minute ads.
Therefor someone with $10,000 to burn is going to buy ads on the cheapest popular videos, not the videos that may potentially be removed by recording companies.
If the RIAA wants to get more money from Youtube, it needs to set a "floor" on what it considers acceptable, and then make sure those who are willing to pay the floor rate or better get their ads seen by streaming short (eg 10 seconds) video/audio ads fixed to the beginning of the stream instead of the current model of "oh I'm an asshole, I'll just block every video coming from the ad domain"
You're talking about two entirely different things. One is a dedicated music service where users listen to music exclusively for hours on end. Another is a video service where people might occasionally go listen to a song, amongst the other videos they might watch that do not contain third party copyrighted music content. So comparing the amount per user is a bit like apples and oranges.
This should be straightforward...number of views on licensed content times amount per view, maybe on a sliding scale or something if that's how it was negotiated. Adjustment for percentage of the song they listened to or was used in the video, if desired.
Remember that in 2011 the music industry claimed that it deserved 75 trillion dollars in damages in the Lime Wire case.
http://www.osnews.com/comments/24561
But at the time, 75 trillion dollars was more than the gross domestic product of the entire world!
It's my opinion (IANAL) that YouTube owes the music industry nothing. And when you start paying the local thugs some protection money, they'll keep coming back to ask for more.
The music industry should bear the entire responsibility of chasing down individual YouTube users, and Google should wash their hands of the whole thing. I think that $1B would be better spent offering legal services to users that are under attack.
Make this like the Cold War, where each side tries to outspend the other. Music industry's global revenue is somewhere around $15B, and Google's is around $17B. If each organization were to play a very costly game of chicken, only Google would have the possibility of walking away from the wreak. In a mutually assured destruction scenario, that means Google wins because their destruction isn't assured. Once that thought experiment is out of the way, only then should negotiations between the two sides begin.
“Common sense is not so common.” — Voltaire
1 billion generated a 1$ per user but 2 billion generates 18$ per user....the proportions don't figure... I like the music industries math though.
You can say greed, or whatever all you want. But the fact is it's their content and they should be able to dictate the terms that it is consumed. While you can argue that its all about money, it's really not. It's about control of what they produce. Now that control will translate into money at some point, but the content owners should be the ones setting the terms how that is done.
and they should.
The IFPI should start shopping for a HIP replacement.
They are following a very old model from a time gone bye.
At very least, Google should teach them who's the boss.
Technology and globalization have "cheapened the middle" of almost every industry. Get used to it.
The most popular performers will do well, and even get bigger access to global markets, but the middle-ground is being hollowed out because the Internet gives consumers more choice and more access to old-but-good material. And, many amateurs give out works for free either to promote them or because money is not their goal. This gives for-profit performers competition who work for peanuts.
Concert, venue, wedding, and bar performances are probably the best source of music wages, not recordings.
The rich get richer, the rest stagnate. Welcome to the club!
Table-ized A.I.
Thought so.
Log in or piss off.
It would be great to get some forward thinking tech entrepreneur to just buy the recording industry and implement it correctly.
Give the recording industry exactly what they want. Remove any and all music and recordings associated with them from all Google services. Watch as they come crawling back begging to play nicely.
That was my question also. I'm thinking that they are using the actual number of Spotify users (if it's about $18 per user for $2 billion, that would be around 111 million users), but then assuming that all 800 million "music users" use YouTube for music. I don't think that's a legitimate assumption. If I want to listen to a particular song I'll search on Spotify first, and if I can't find it there then maybe I'll try YouTube or something else. I would be surprised if even 100 million people use YouTube as their primary source of music. If that number is around 55 million people, then YouTube is paying the same amount per music user as Spotify.
"Our two-party system is like a bowl of shit looking at itself in a mirror." - Lewis Black
Somewhere, in a plush office, a lowly functionary told a music industry big wig that they got $1 billion from YouTube. He quickly demanded more.
"Why make one billion dollars, when you can make [pinky to lip] one MILLION dollars?"
My sci-fi novel, Ghost Thief, is now available from Amazon.com.
Youtube isn't a music streaming service and nor is most of the videos. They fall in this category, but its really a small snapshot of the overall users. It's a user generated video service. Youtube's user base isn't streaming music in the car, getting ready for work in the morning. You cannot compare the revenue of Spotify, pandora, or Apple Music. It's not even the same ball park.
As a service provide Youtube content-ID system is actually very affective. They act as if Google is not working at enabling and helping protect the artists. They act like they are held hostage when almost everyone one of their artists use youtube as a way to distribute official music videos and content and get paid on this content. They have no need to do this with the safe harbor provisions and artists do not have to use the service to get out to the masses. It's more of a partnership.
The artists use YouTube heavily as a distribution system for their videos and new music launches. More importantly today for every $1000 earned in music either online or album sales, a band member or singer get about $25 of it. The band accounts for 13% total pay of that $1000 dollars. The studio and distributers get the biggest cut. If the artists were really mad, they would first cut better deals as there is far more money lost at the label and distributer for services they are forced to use and pay than on Youtube or other platforms. Services that are heavily automated and significantly easier distribution systems. Hell, they should look at YouTube as a distributer and not an internet radio station.
Just my take.
The recording industry is as obsolete as buggy whip manufacturers, and pop music is something frivolous that is highly overvalued. That billion is way too much.
The Uncoveror: It's the real news.
Fuck you "music" industry, get over yourselves. The end is here for your monopolistic 1950's business model. You are holding on to a bygone age of music, embrace the digital revolution and make it easy for people and don't screw them. If you make it hard they will resist and turn to illegal methods - it's well documented.
You said 8-track would kill the music industry, then cassettes, then CDs, then format shifting. None of which has killed your "industry" - and buy industry I mean the endless amounts of poppy-urban(e)-gangasta-hip-hop-rock-auto-tuned BS that gets churned out daily fronted by largely talentless one-hit wonders. That last statement was not a denigration of those genres (except anything autotuned), it's a reflection of the utter crap called "music" these days, before music videos, music was music and not all about image (I'm looking at you, American Idol)
"Music" industry, should be thanking Steve Jobs for creating iTunes, he did what you could not, and the emergence of Spotify et. al. for meaning you still have people to sell something to and have not totally alienated the people that matter, your consumer.
I have never found a favorite band by marketing. I learned about bands through word of mouth and going to concerts, clubs, and bars. Today, I know people who have similar music taste and that's how I expand my knowledge.
While your statement may hold true for what people call Pop music (Swift, Gaga, Spears, etc..) I don't know anyone who listens to or likes that stuff.
The Ramones, Sex Pistols, and countless others were popular underground, like early Metallica and Megadeath. "Pop" came to them after they were already popular, and the labeling and change in music due to Pop influence drove large numbers of their followers away. My all time favorite Dream Theater has had virtually no marketing yet has remained successful for 30 years. I was not introduced to newer acts like Wolf Alice by marketing, it was someone saying "hey, this band sounds great".
Marketing is for Pop, and it has both pros and cons.
-The wise argue that there are few absolutes, the fool argues that there are no probabilities.
No. Intellectual property should be abolished.
https://www.youtube.com/watch?...
I'd love to see the day where Google says fine - we can't agree on a price therefore, we will remove all your copyrighted content from Youtube.
The best way to handle a bully is to stand up to them. The RIAA needs Google far worse than Google needs the RIAA.
If the RIAA shrinks down to a minimal number of middlemen from lack of money (I guess those people would go to work in regular finance or something their skills would apply for), is this enough to keep the world's musicians able to make new songs and live in modest comfort?
How many people does it actually take to record a decent sounding album? I had the impression, from my friends with their amateur semi-pro bands, that it just takes a few. You need the musicians, some instruments, and a booth in a place with cheap rent that has good mics and that special stuff in the walls. Then a computer and a few thousand bucks worth of gear (including the mics) to convert the sound to digital, and a (usually pirated) copy of that software that lets you mix the tracks.
1 billion from youtube, plus a few more billion from direct sales and from the movie industry does sound like it ought to keep a few thousand artists in business. Enough to make more new songs than we can ever individually or collectively listen to. Am I right?
do kids still listen to the radio?
Yes, if only in the bus or car while riding to or from state-mandated attendance at a public or accredited private school.
Now there's no scarcity of airtime
If there were "no scarcity of airtime", people wouldn't be complaining about monthly usage caps, and Google wouldn't have to introduce delta compression for Android application package updates.
I learned about bands through word of mouth and going to concerts, clubs, and bars.
Then how are high school students and college underclassmen under age 21, for whom entering a bar or a club that serves alcohol is a crime, expected to learn about bands without help from labels affiliated with the RIAA?
Weird Al Yankovic!
With all of those high quality videos he deserves even more.
There is a difference between Spotify and YouTube. One is a subscription service that provides an organized stream of licensed music. YouTube is just a general platform for video distribution upon which can *might* be able to find a song in a mishmash of other content. YouTube shouldn't be paying out anything, but under the entertainment industry's logic at best it should pay out substantially less than Spotify. YouTube isn't the radio, but it's closer to the radio and the radio generally promotes artists music. YouTube should be no more obliged to pay than the radio stations. And the exorbitant fees charged to online radio should be eliminated.
Of course it's not enough. The RIAA sues a grandma for millions for having 2 pirated songs on her computer. They probably thing they are owed 6 quadrillion dollars.
This is just the RIAA trying to alter the licensing deal in place with U-Tube. Yea, they want a bigger piece of the pie and I don't blame them for asking. However, in all negotiations there comes a point where you have to realize that there are just some bargains that cannot be made or you risk killing the deal and giving up all your gains. RIAA seems to be dangerously close to this point to me.
So, if the RIAA wants to kill one of their golden egg laying geese by overloading U-Tube with license fees, it's their loss. Personally, I don't do much on U-Tube and the few videos I watch don't have RIAA licensed material in them so if they go bust trying to pay the RIAA their fees or actively remove any RIAA licensed material from their service, I won't miss U-Tube much. So if RIAA wants to shoot themselves in the foot, fine by me.
But I dare think that the RIAA is really just in the process of setting up the terms of their next license deal with U-Tube. They are asking for more than they expect to get from U-Tube in what is really just a standard negotiation tactic used in all sorts of situations, from bargaining over a $0.25 price at a garage sale though international trade deals.
"File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
the reason i dont buy music anymore is because they try to milk their customers for all the money they can squeeze out of them, anymore i just listen to amateur musicians on youtube, i heard amateurs play cover songs better than the origional pro artist, so fuck the RIAA and all the stooge pro artists they are not getting any more of my cabbage
We need to stop IP greed. Instead we should shift to merit model. We need a licensing and pricing body in the US like they have in UK.
In the UK the government sets prices for IP and there is no restrictions on who can license. There is no right to refuse service. You can't charge one person one price and another a second price.
For YouTube there should be something like a tribunal/committee where all cards and analysis are laid on the table and then they decide the price according to public benefit (aka the justification of IP laws... promoting the arts and sciences). Such a committee doesn't need black and white like courts often do and can more fairly price arbitrary grey use that can fall between fair use and commercial use.
> If it weren't for the RIAA & large music industry companies I bet there would be large sites where all artists could upload their music and users could search for a specific artist, by genre or similar to someone they'd heard
That's called Myspace. There are 53 million songs for you to choose from on Myspace.
Some people like that approach and use Myspace or similar sites to find music. MOST people don't want to sort through 53 million songs by artists of varying quality, and greatly varying production quality - even a really good artist can sound crappy if the sound engineers and others involved in producing the song don't do an excellent job. Most people would rather have *somebody else* sort through the artists and songs for them, arrange to have skilled technicians and producers work with the artist's who are pretty good, then deliver an album of predictable quality.
I don't like music. Music is stupid.
It's all emotional masturbation. Live your own life.
I've also optimized my wardrobe by only wearing jeans and black tshirts.
Everybody else is a rube or a chump.
Says the leech. yes - a biological organism (symbiote) that obtains sustensnce by sucking nutrients (blood) from a host.
Is this a benefcial arrangement? Or just a drain on the life of the host.
If the first, then it is usefule-limited usefulness, but still useful.
If the second, then it should be removed, exorcised, killed thoroughly.
If the RIAA is determining the "enough" amount, then it will probably not ever say "enough".
If a court gets involved through contract law then RIAA should have NO say in the "enough" part, as it is defined by a contract.
Kill the parasite. limit the beneficial parasite.
lawyers.... Harrruuuuummmmph!
You only have to look at the comments here to know why no-one in the rest of the world gives a fuck that IT jobs are being outsourced. You guys will throw anyone under a bus and then wonder why the fuck no one wants to help you out when you aren't getting paid.
You guys expected the RIAA's numbers to make sense? Screw that, its called 'fake news' again. Or in other words 'use numbers that seem reasonable but require you to actually think a bit to realize their comparing apples to oranges'.
The RIAA can't assume that all '800 million music users world wide' use Youtube OR they'd have to assume all 800 million are using Spotify & apply that number to the Spotify revenues. Heck you can't even assume that the '800 million music users world wide' IF this meant 'Youtube music users' were listening to the same amount of music on Youtube as on Spotify. If you want to compare apples-to-apples you'd have to get this down to 'price per listened to track'...heck, you could even assume people stop a track at any point in the song (Maybe they don't like it, or weren't in the mood or thought it was a different song), so to get right down to real 'apples-to-apples' you might even do the comparison as 'price per second of listened to music'...of course this would likely be in the '10ths or hundredths of a penny' area so wouldn't 'look good' in stories e.g. 'Youtube pays us .0001 cents per second & Spotify pays us .00015 cents per second'...is that .00005 cents per second difference meaningful? people wouldn't have a 'feel' for it at all & most people would likely think 'REALLY you're debating over .00005 cents?' and missing the 'per second' part & not doing the math whereby say 1 billion 'listening seconds' means $50K difference. With 7 billion people in the world that's potentially 2.2x10^17 'available listening seconds' for all humans & thus a potential revenue difference of >$11 TRILLION dollars so yeah that '.00005' cents can make a difference.
Of course another major issue here is that the RIAA is assuming the amount that Spotify pays them is the CORRECT amount that should be paid vs what they make from Youtube. Perhaps the Youtube amount is more 'correct' and users are simply getting screwed on Spotify.
"If you think music repeats itself and that some songs sound exactly the freaking same, there could be a reason for that (well, other than piss poor artists being gobbled up by the machine): there's a finite limitation on how different songs can be. There is? Yep, says MATH."
http://gizmodo.com/5962375/is-it-possible-to-run-out-of-new-music
So eventually the RIAA will own anything that sounds pleasing to our ears... :(
I dunno what this spokesperson is complaining about.
The DMCA system is already plenty abused on YouTube, all the revenue generated on YouTube works the same way for all.
In fact, YouTube kinda went out of their way overstepping common law and creating all sorts of anti-consumer provisions to conform to music and movie industry demands.
Labels have their official channels there on the service, they agreed to the same stuff all creatives on YouTube also do. That is, assuming YouTube didn't close even more profitable deals with record labels behind the scenes.
If YouTube is so bad, labels can simply delete their channels and stick to music streaming services instead. You know, there are plenty of channels to go for, including crap like Tidal.
What the music industry won't talk about, of course, is reach. It's the same exact reason why piracy always have a negative outlook without we ever hearing about positive impacts it had in several entertainment industries. It's why they won't pull channels from YouTube despite all this whinning.
How long have we been hearing complaints about YouTube coming from the music industry? Why the hell are they still there if it's this bad after all these years? The answer is pretty obvious. YouTube is not Spotify, Apple or Deezer. It's not even comparable. It's not a dedicated music streaming service. It's a general purpose video streaming platform. YouTube has over a billion users, while all these other services put together won't reach even a hundred million. YouTube's reach is tenfold at the very minimum, and to a wider variety of people.
You wanna expose your content to a public like that, that's the price to pay. And of course platforms dedicated only to music will generate more revenue, it is their main business after all.
Google, for one day, turn off YouTube. Let's see what happens.
DON'T PAY THE FUCKING DANEGELD!!!1
It was a test of wills, and you folded. Now the sharks smell blood in the water, and you're fucked.
GG Youtube. RIP Youtube.
qed
Their comparison between what Spotify has paid them and what YouTube is paying them is a pretty poor comparison. On Spotify, the vast majority of the music played incurs some for of royalty. On YouTube, although there is a lot of copywritten material out there for sure, the bulk of the content does not necessarily incur royalty costs.
The comparison maybe would have been valid if they had qualified it with "For the same about of copywritten material viewed on YouTube vs played on Spotify, Spotify paid us double the royalties."
It's loosely equivalent to some Minneapolis politician complaining about how much less toll revenue they get compared to Chicago when a large number of Chicago's freeways are tollways and Minneapolis only charges for express lanes (when you're not a carpool).(I know the analogy is a bit of a stretch but it's been a long day.. gimme a break!! ;)
For the music industry, there is no such thing as "enough profit." If someone else is getting a tiny sliver of the pie, or if they are missing out on a few crumbs of the pie, the music industry demands to be compensated with several full pies.
The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
If it's not enough, they should return it and take their content off of YouTube. Tell people to go back to the site that they used to use. What was it called? Something Bay?
CAPCHA: promote
is still more than 100% of nothing, but with some of the contracts out there the band ends up in debt paying off their "advances". 100% of 0 is better than 10% of -$100,000.
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
so they're the public face representing the interests of those record companies and setting the policies and tone for those companies. It's like the NRA. They're a trade group.
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
When the original John D. Rockerfeller was asked how much money is enough? He replied: "Just a little bit more." https://starwinar.wordpress.co...
It's NEVER enough when asked from them. Stupid fuckers.
Those supposed 800million peeps maybe only 1% might pay. How does their math work out then?
outlaw and forcibly disband the RIAA. Screw the lawyers give the money to the artists
This is dubious. The media industry in Hollywood, is extremely powerful with MPA, RIAA, etc etc.In fact, USA threatened Russia with trade embargos a couple of years ago if Russia did not shut down an illegal MP3 site. This proves that Hollywood has it's tentacles inside the White House. Taylor Swift left Spotify last year because she did not earn any money from Spotify, she only got something like $10.000 for the whole year. However, Spotify CEO Daniel Ek replied that Spotify pays out 70% of all revenue to the large media companies in Hollywood, and she alone was paid $2 million to her media company. It seems that her media company took 99% or so of Swift's revenue. So don't mess with Hollywood, they have money and power. However, when artists go on touring, the media company gets nothing. Touring is how the artists earn their money, and that is why Rolling Stones etc tour all the time. Because otherwise they won't earn any money.