BigChampagne's Ultimate Chart (a/o February 10th):
1. “What Doesn't Kill You (Stronger),” Kelly Clarkson
2. “Set Fire to the Rain,” Adele
3. “Turn Me On,” David Guetta
4. “Rack City,” TYGA
5. “Good Feeling,” Flo Rida
6. “Smooth Criminal (Glee Cast Version),” Glee Cast
7. “Young, Wild & Free,” Snoop Dogg & Wiz Khalifa
8. “Domino ,” Jessie J
9. “Sexy and I Know It,” LMFAO
10. “Ass Back Home ,” Gym Class Heroes
YouTube is now compensating content owners for their videos, though the revenue picture still appears developmental at best. At the You Are In Control symposium in Reykjavik on Thursday, executives pointed to a new revenue source, but also highlighted a work in progress.
MTV downsized the music video ages ago, though the format has experienced a renaissance on YouTube and other online video outlets. The biggest, most-requested artist on YouTube is easily Avril Lavigne, particularly for the track, "Girlfriend." According to YouTube figures, Avril's "Girlfriend" has been viewed more than 104 million times, "While You're Gone" another 34 million, and "My Happy Ending" another 22.6 million.
So how much is all of that worth? According to Terry McBride, chief executive and cofounder of Nettwerk Music Group, Avril's traffic has already rustled a few hundred thousand. "She's been accounted to through her record label for at least a quarter million dollars to date, and that's just the beginning of what this is," McBride told Digital Music News.
Earlier this year, McBride was misquoted as saying that Lavigne was fetching millions on YouTube, though that was a potential - not actual - figure. In Iceland, McBride continued to point to a developing source, and admitted that the numbers are still being sorted out. "Can I really quantify exactly what it's going to be? Not until I do an audit three years from now, and actually get access to the source data," McBride shared.
Major labels are probably less-than-thrilled by the revenues attached to YouTube. But McBride is a believer in the platform for both promotional and monetary reasons. "There are a lot of new revenue sources opening up, and YouTube is a revenue source," McBride continued. "We're doing this with all of our artists... it's all microeconomics, and it will add up."
But adding it up in an orderly fashion remains a challenge. On paper, YouTube is paying content owners, though the details are chaotic at this stage. That was clearly expressed by McBride, and publishers echoed the sentiment. "Everyone has said yes, we are going to try to allocate this as best we can, we are gong to try to somehow understand which songs have been used and how much," said Freibank Publishing founder Mark Chung.
But clear and concise royalty statements for publishing usage remain a distant promise. "I think the reality is that payments are going to be initially allocated as lump-sum payments to the publishers and the writers that have generated the most royalties," Chung predicted. "You won't actually get a line item on your statement for a long time to come."
Report by publisher Paul Resnikoff in Reykjavik.
Digital Music News (August 28, 2008), "YouTube: Most Are Choosing to Monetize"
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