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Friday 4 January 2013

How record labels are learning to make money from YouTube.




Rather than getting unauthorised versions of videos taken down, labels are monetising them through YouTube's ad partnerships.

  • guardian.co.uk,
  • Shortly before Christmas the Gangnam Style official video broke a YouTube record by clocking up a billion views. How much Psy will pocket for these views depends, of course, on what his record deal stipulates, but the Guardian can now at least reveal what some of the biggest independent labels make.

    Recently Martin Mills, founder and chairman of the Beggars Group (home to artists such as Adele, Jack White and The xx), told me that last year 22% of the label group's digital revenues came from streaming – and that the majority of its artists earn more now from track streams than track downloads.

    Though it's not required to do so, Beggars Group currently pays artists 50% of streaming revenue, as Mills "thinks it's the right thing to do in this nascent stage of the market". This is not, by any means, an industry standard. Robbie Williams's co-manager Tim Clark says that not many labels pay that much: "I believe some record companies are paying some artists that rate – Universal among them."

    Mills says the highest unit revenue for streaming comes from Spotify – a significant multiple of what Beggars makes from YouTube, though the number of streams on the latter is greater.
    Anyone who has ever tried to get unauthorised versions and videos of their music off YouTube knows that...........
    http://www.guardian.co.uk/media/2013/jan/04/record-labels-making-money-youtube


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