YouTube paid over $6 billion to the music industry in 12 months

YouTube, the world’s largest music streaming platform, said it paid out more than $6 billion to the music industry in the 12 months between July 2021 and June 2022, some $2 billion more. than she had reported having paid in the previous 12 months. Like last year, the announcement takes the form of a blog post by the platform’s music manager, Lyor Cohen.

Although short on specifics, the post outlines some of the contributing factors. “We want our dual ad and subscription engine to be the number one revenue contributor to the industry by 2025,” Cohen wrote. “That’s why YouTube monetizes all music formats (short and long videos, audio tracks, Live, etc.), on all platforms (computer, tablet, mobile and TV), in more than 100 countries. And the duration overall viewership of music content on YouTube across desktop, tablet, mobile, and TV continues to grow year over year.”

He continued: “We also pioneered the monetization of user-generated content (UGC), which we knew could become a powerful driver for the industry: UGC generated more than 30% of payments for artists, songwriters and rights holders, for the second year in a row; Shorts generates 30 billion views per day, with 1.5 billion users logged in per month.

However, despite these large numbers, over the years, music industry trade groups and others have challenged YouTube’s royalty system for its lack of transparency and, many believe, underpayments. Just a day ago, a Billboard report contained a number of detailed allegations, backed up by claims from a number of unnamed sources, which claim that YouTube’s rights management system is “full of mistakes” and “ready for abuse”.

However, his influence and success are indisputable. In his blog post, Cohen highlighted BlackPink’s recent single “Pink Venom” as a way for fans to “discover, consume and engage with music across multiple content formats, and only YouTube can deliver all of that experience in one place,” he wrote. . “Fans went from the music video teaser, to the Shorts challenge, to the music video premiere live stream and beyond. Then WOW: “Pink Venom” became the biggest 24-hour debut music video of 2022 and the third-biggest 24-hour music debut of all time.

He concluded by writing, “Building a connected music experience across all music formats is great for fans, but it must also be great for artists. All artists. Whether they want to be occasionally brilliant or ‘always on’, our mission is to help them chart their own path on YouTube and develop financially viable careers.”

The announcement comes ahead of a big change at YouTube: Late last month, chief commercial officer Robert Kyncl said he would be leaving the company in early 2023 after more than 12 years as a senior executive at the streaming giant. the video. Kyncl, which previously played a major role in Netflix’s move from DVD to digital, helped turn YouTube into a multi-billion dollar powerhouse and played a significant role in its relationship with the music industry.

Mary Ellen Coe, a 10-year Google veteran who most recently served as president of Google Customer Solutions, oversaw the internet company’s global advertising business for midsize and small businesses.

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