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OK Go: YouTube Revenues Are 'Like Finding Change On the Street...'

Monday, February 20, 2012
by  paul

OK Go is one of the most successful bands in YouTube history. Yet despite more than a hundred million plays, YouTube plays are hardly generating any substantive revenue for the group.  "I can speak to an artist who gets a lot of traffic, which is OK Go," manager Jamie Kitman told a SF MusicTech Summit audience last week.  "And I would say that 'trickle' is the operative word, in terms of revenue we receive from places like YouTube and VEVO."           

 

"But the YouTube revenue is so small based on how many streams we've done that I would say that it's not a business model, it's like finding change on the street."

 

Earlier, the band also admitted that downstream recording sales are also rather paltry, despite the utterly massive views and virality of its videos.  Which means that Kitman and the band are focused on monetizing huge advertising relationships with the likes of Chevrolet and State Farm, because that's where the money is.

 

 

Which sounds like a great thing to pull off, though Kitman seemed to view this more as a freak accident than a viable model.  "It's great to get Chevrolet to sponsor your video - a million dollars to go make something insane - but the precedent, the first step is to get 175 million downloads, and not everyone can do that.  And it doesn't describe a model for developing acts. I wish I could do that for every one of my acts, but it's hard even with all the time in the world."  

Even worse, there's money sitting somewhere over at VEVO, but OK Go isn't seeing it.  

 

"Our old label [EMI] has a deal with VEVO, and perhaps they get paid and then don't pay us on, so I can't really speak to what that stream is."   

 





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    Comments (31)

    OK GOO Monday, February 20, 2012

    Looks like OK GO has been roasted like Kenny Rogers.


    PartlyCloudy Monday, February 20, 2012

    There must be some kind of mistake here. Vevo pays Beyonce right on time.


    Rio Caraeff Monday, February 20, 2012

    We (VEVO) pay every single video licensor fairly (based upon all revenue, not just revenue generated from video watch pages like some other services do), on-time and on the same commercial terms no matter whether one is a major or independent label or distributor.

    What happens between an artist and their label or distributor in their contractual relationship are simply not something that we are party to and every artist's deal is different.

    We fully respect music, artistry and our teams work incredibly hard to build audiences and generate revenue for artists, writers and rights owners from a user-behavior (watching music videos) that was considered promotional by the industry for so many years.

    I am not willing to engage in a public debate here other than what I have already said (so please don't contact me for more quotes on this) but I felt like declaring the simple truth of how we operate as it seems like this place attracts many who easily disparage without knowing the facts.

    - Rio


    nathanJE Monday, February 20, 2012

    Good point. They pay EMI, EMI needs to pay OK GO. 


    paul Monday, February 20, 2012

    Everyone,

    Just confirmed with VEVO that this is definitely Rio.  It's 'certified'.

    /paul


    Visitor Monday, February 20, 2012

    This is such a cop out --- because the reality is Vevo is the joint venture of Universal and Sony.  So they own a big piece.  Then EMI is only one of a few partners. It's like the family business stealing from you (then the boss telling you his brother did it)


    Em Tuesday, February 21, 2012

    How is it like that AT ALL?!

    If a band (or writer) hasn't been paid by a label (or publisher) who has received money, then how is that the services fault?

    If the service isn't a party to the contract beween the band and the label (which they are not), then they can't be in a position to influence that relationship.  It's simple cointract law.

    As long as the correct labels are being paid, people need to take their beef up with them!

    I love how 'bash-VEVO' is the new 'bash-Spotify'...


    Vail, CO Tuesday, February 21, 2012

    Vevo is owned by two of the major labels (it's a joint venture) so I think the family analogy is right on.  


    Paradox Tuesday, February 21, 2012

    Hello Rio Caraeff,

    You guys at VEVO are doing a great job.  I love the service.

    Any chance that a VEVO Live Stream (24/7) will be created?

     

     (maybe with a user counter so everyone watching would know how many people around the world is watching at the same time, and half the MVs are streamed based on Fan Voting through facebook.....#1 vote getter get stream, then start at 0 vote again, #2 stream, then start at 0 vote again etc...)

     


    Doug Morris Tuesday, February 21, 2012

    VEVO 24/7 Live Stream would be a great for music discovery.  

    It would be like MTV back in the late 1980s/early 1990s where they just play MVs all day long.  

    There is an audience for "passive" MVs viewing.  

    The Currently Viewing Counter is a great idea.  

     


    @cxy Tuesday, February 21, 2012

    OK GO needs to talk to EMI.


    Jimmy Tuesday, February 21, 2012

    Vevo and Spotify are such scams.

    Owned by majors and majors get all the money.

    Dude, at least admit that.

    @Awesomeosity Monday, February 20, 2012

    I wish INDMUSIC could have helped.


    @WaldeckS Monday, February 20, 2012

    We've heard this one before.


    Anita Lixel Tuesday, February 21, 2012

    Can you share some numbers to give us an idea? Thanks


    @LeslieBAP Tuesday, February 21, 2012

    You can't eat views/likes...


    @MusicTechPolicy Tuesday, February 21, 2012

    But YouTube can sell the data.


    @Sonicbids Tuesday, February 21, 2012

    More proof the money is in brands and sponsorship.


    @keesdekoning Tuesday, February 21, 2012

    onderschrijf jij dit?


    @unicum_music Tuesday, February 21, 2012

    This is not what you would expect.


    @michaelbayler Tuesday, February 21, 2012

    Oh dear!  Blast of reality here.


    @mr_trick Tuesday, February 21, 2012

    Youtube won't like that.


    David G Tuesday, February 21, 2012

    With Google and youtube "You" are the product they are selling. its a popular misconception that their product is advertising, video views or search. Its actually you. Not very important but useful to keep in mind. That said the fact that it is possible to get a share of the advertising revenues generated around video views with your music in them (60% to the artist for US views and a bit less for Euro views) is a definite and big step in the right direction. However we just introduced this deal and it creates some interesting reactions from the artists.

    David G

    indigoboom.com


    Peter Michael Tuesday, February 21, 2012

    This man bites the hand that feeds him.  YT is a promotional tool, that put the act he represents where they are today.  The fact that they allow additional revenue for the views is a nice gesture on their part, that was never intended to replace the purchase of music.  YT allows the listener to try a song out.  YT allows an artist to make a global presentation of their song.

    OK Go made it thanks to them.
    This man is confused, and needs to be more familiar with his calculator.


    confused Tuesday, February 21, 2012

    Are you simply confirming what Kitman is saying or offering a condescending counter argument?


    FABVRICEABSIL Tuesday, February 21, 2012

      Dear PETER,

     

     you are a million times right.  Unhappily  OK GO's manager  has not caught the  opportunities Y T & other channels are bringing to  his act .Sharing revenues with their major label is another story  but with 100 Milion views  he has an "establish  brand"  excepted that the  OK GO music is not so emotionnal !!


    dougie g Tuesday, February 21, 2012

    "Bites the hand that feeds him?" The point is, they're not getting fed. "Put the act where they are today?" You mean, very well known but with almost no income? How is that such a great thing? "OK Go made it thanks to them?" Made it where, exactly? It seems that even massive amounts of views on Youtube do not actually lead anywhere at all, career-wise. In OK Go's case, maybe it's leading them to providing music for a car commercial. Why, that's every young musician's dream!


    frank Wednesday, February 22, 2012

    ummm....maybe it's because their videos are more interesting than their music? Therefore no one gives a crap about paying to see them live, buy merch or music.

    Their marketing plan is the creativeness of their videos, not the strength of their songs. How the HELL are you supposed to "make it" in the music business if people don't care about your music!?!

     


    dougie g. Tuesday, February 21, 2012

    "Bites the hand that feeds him?" The point is, they're not getting fed. "Put the act where they are today?" You mean, very well known but with almost no income? How is that such a great thing? "OK Go made it thanks to them?" Made it where, exactly? It seems that even massive amounts of views on Youtube do not actually lead anywhere at all, career-wise. In OK Go's case, maybe it's leading them to providing music for a car commercial. Why, that's every young musician's dream!

    @jabric Wednesday, February 22, 2012

    OK Go gagne de l'argent via ses partenariats, pas via sa musique


    amplefire Thursday, February 23, 2012

    Time to boycott many of the internet corporations that compromise our personal information with Big Brother's eyes on us at all times, literally tracking our every keystroke and whereabouts.

    Youtube profits itself off the slave backs of the people directly responsible for making Youtube the royal kingdom it is. Youtube has a castle alongside Google, Apple, Microsoft, Amazon, etc. These corporations DO NOT represent the values of a democratic population. It's just the new face of the same old super rich finding another way to suck the life out of us. 

    Time the stop following the Pied Piper of all the things we most abhore (how clever they fool us into thinking WE are in charge! Feed us a little Facebook vanity for our bread and circus).

    Time to get ourselves back to the garden, back to our humanity. And, by the way, those same entities are out there fracking and logging away our precious EARTH while we sit glued to our laptops, typing away our futures, literally handing over everything we've worked for to the top 1%. We should be tarring and feathering the scounderals instead of sipping lattes. Our great grandchildren will hate us asking "How could that generation be sooo stupid! Soooo lazy! Just sitting around glued to computers and iphones 24/7. literally surrendering their government and planet to the powerful oligarchs." 

    Thankfully, humans have locked deep inside their DNA the ability to take a step in another direction. It doesn't happen often, but every now and then humans stand up for themselves, cut off the old head and implement the new. Once in a while, in moments of intense frustration culminating in "enlightenment," humans think for themselves, understand that most of their brothers and sisters thing the same way, and join together to fight the powers that be.

    REVOLUTION IS NOW. CAN'T YOU FEEL IT YET?


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