YouTube Royalties Exploded 370% Last Year, Tunecore Reports

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YouTube is undoubtedly the world’s largest online video platform, with over a billion users, which is almost a third of all people on the internet. It offers a wide range of content, from music videos to tutorials, gaming, and vlogs. However, YouTube is often criticized for paying lower royalty levels to artists compared to other streaming music rivals. Despite the criticism, the royalties on YouTube are growing very fast, 370% year-on-year, according to just-released data from Tunecore.

The company’s video advertising revenue has been increasing year on year, and according to a report by Bloomberg last year, the company “estimates a gross revenue of $12.8 billion by 2017 and is valued at $70 billion on its own.” YouTube touts its reputation for empowering artists to grow their careers, distributing their original music content across a global network, and earning revenue for the artists. That explains their latest acquisition of Bandpage.

Bandpage is a company that aims to help musicians increase their revenue across innumerable channels. In that light, the acquisition could help YouTube expand and grow further, as artists are always looking for ways to earn money in the digital industry. YouTube is already an excellent platform for musicians to showcase their talent and build a fan base, but with Bandpage’s tools and expertise, it can offer more opportunities for artists to monetize their content.

On YouTube, artists earn revenue whenever an advert is placed on their video, at least for claimed channels. Those per-streams are paltry, though they’re also booming: according to Tunecore, member artists enjoyed a 370% increase in royalties on the platform in 2015. However, YouTube’s revenue-sharing model is not as transparent as other streaming music rivals, which has led to criticism from artists and their representatives.

YouTube Red is an ad-free streaming service that costs users $10 a month. With YouTube Red, users can watch videos without ads, save videos to watch offline, and access exclusive content. The recent addition of YouTube Red has helped the platform grow revenue per user. YouTube Red premiered its first four exclusive video shows last week, part of a broader bid to compete with Netflix and Amazon.

Despite the criticism, YouTube remains an important platform for artists to promote their music and build a fan base. Many artists have gained popularity and success through YouTube, including Justin Bieber, Shawn Mendes, and Charlie Puth. YouTube has also launched a program called YouTube for Artists, which offers tools and resources for artists to grow their careers on the platform.

In conclusion, while YouTube may not pay as much in royalties as other streaming music rivals, it remains the world’s largest video platform and offers a wealth of opportunities for artists to showcase their talent and build a fan base. The recent acquisition of Bandpage and the launch of YouTube Red are signs that the platform is continuously evolving and expanding to offer more opportunities for artists to monetize their content. Despite the criticism, YouTube remains a vital platform for artists to grow their careers and reach a global audience.

15 Responses

  1. Jeff Robinson

    No, Youtube royalties don’t stink.

    Our artists have been earning 11 to 15 cents a view from Youtube for situations where the viewer sees the entire video ad placed before the material. Clearly, it’s the best streaming rate on the internet.

    • Anonymous

      “for situations where the viewer sees the entire video ad placed before the material”

      And so many fans do that, right…

      (Dear YouTube: Ever heard of adblock-blocking?)

    • Sarah

      Wow, that’s awesome …. if that’s a typical rate on YT, I wonder how that hasn’t been a big story.

      “Our artists have been earning 11 to 15 cents a view from Youtube for situations where the viewer sees the entire video ad placed before the material.”

      What percentage of views involve the viewer watching the entire video ad? I imagine many people skip video ads and/or use ad blocker altogether.

      • Sarah

        Hi Anonymous!!!

        Lots of interesting news, but we’re not quite ready to share publicly yet. On a totally unrelated subject, we’re relocating to Nashville to work more closely with some partners there… 😉

        p.s. were those your comments on YT monetization on the royalties article?

      • Anonymous

        Good to hear you’re on the right track, Sarah.

        Yup, my comments…

      • Sarah

        I thought so…. some of the more helpful comments I’ve seen here in a while 🙂

    • Paul Resnikoff

      I’ll believe that when I see it. So, let’s see it! paul@

  2. Remi Swierczek

    Exploded from zero to quadruple zero!

    YouTube is a medieval music composter.
    Billions of tunes have to be composted to generate some advertising STINK and sporadic live grade flower!

    Time to harness internet to direct music monetization! Music has more potential than Google or all of digital advertising.

  3. R.P.

    an article that points out the rates per youtube stream and how to go about claiming any royalties that you may have from youtube plays would be good too.

    Thanks for the information, though.

    • HelloGoodbye

      Yep. 370% increase, but an increase of what ?? A 370% increase of a 0,0000000000001 cent rate isn’t worth mentionning.