Tag: Royalty Plan

Categories
Industry News News

YouTube claims it paid over $3 Billion to the Music Industry in 2019

Youtube Money

YouTube, one of the most popular destinations for music discovery and consumption, is citing huge 2019 payouts to change the conversation around its notoriously low royalty rates.

In a quarterly blog post released this week, YouTube CEO Susan Wojcicki praised her company’s relationship with the music industry. “YouTube offers twin engines for revenue with advertising and subscribers,” she wrote. “Paying out more than $3 billion to the music industry last year from ads and subscriptions.”

YouTube recently announced $15.5 billion in ad-supported revenue for 2019. Before you start believing the company gave nearly 20% of that money to the music business, take a moment to read Wojcicki’s comments again. The $3 billion paid to the industry is from a combination of ads and subscriptions (meaning YouTube premium subscriptions, which now number above 20 million worldwide).

That said, the $3 billion mentioned in Wojcicki’s report is pretty stunning. According to calculations published by Music Business Worldwide, the 2019 payouts account for one-quarter of YouTube’s lifetime payments to the music industry. MBW believes YouTube has overtaken or is close to overtaking Apple Music as the industry’s second-largest digital partner (behind Spotify).

These numbers are huge, but they are nothing compared to the video consumption rates YouTube has shared in recent years. In 2018, YouTube claimed that “more than 1 billion music fans come to YouTube each month to be part of music culture and discover new music.” In June 2019, a report came out claiming that music videos were watched just under two trillion times on YouTube in 2018, representing 20% of total views on the platform. $3 billion is a lot of money, but is it enough to represent one-fifth of the total consumption on the platform?

Wojcicki also shared the following insights about YouTube’s evolving relationship with the music business:

We’re also partnering with artists to support and amplify their work through every phase of their career. Dua Lipa was in YouTube’s first-ever Foundry program — our initiative to develop independent music acts. Justin Bieber and Billie Eilish have built massive global audiences by directly connecting and engaging with fans on YouTube. At just 18 years old, Billie is now one of the world’s biggest stars with five recent Grammy wins. And from its early days, YouTube has been a home for artists who found creative ways to use the platform to help expand their reach. In 2005, OK Go had one of the first viral hits with their music video, “A Million Ways.” Fans posted their own versions of the boy band-inspired choreography, and OK Go decided to make it official with a dance challenge on YouTube. We continue to see unknown artists make it big with a single viral hit. Last year, Lil Nas X’s “Old Town Road” became a YouTube phenomenon and the longest-leading single atop the Billboard Hot 100.

YouTube has long been criticized for its notoriously low royalty rates on views, but the numbers from 2019 show that image may be changing for the better. We’ll bring you more on the platform’s relationship with the industry as soon as additional details become available.

Categories
News

Apple Changes Royalty Plan Following Taylor Swift’s Open Letter: Will Pay Labels During Free Trial

Whether you’re an artists working in pop, country, rock, rap, hip-hop, black metal, doom, grindcore, folk instrumentalism, post-modern opera, or some obscure combination of everything in between, everyone in music owes Taylor Swift a bit of thanks for speaking up against Apple’s new royalty plan for the launch of Apple Music over the weekend. Her open letter, which called the plan to not pay artists during the company’s three-month trial launch ‘disappointing,’ went viral just jours before senior vice president of internet services and software Eddy Cue tweeted that Apple would, in fact, pay artists during the 90-day period. 

In an interview with Billboard, Cue elaborated that it was Swift’s letter that turned him around on the issue. “When I woke up this morning and saw what Taylor had written, it really solidified that we needed a change. And so that’s why we decide we will now pay artists during the trial period.”

Everyone expected the tech giant to respond to Swift’s letter, but the seemingly immediate change of policy came as a surprise to many, including Swift herself. “I am elated and relieved,” she tweeted after the new broke. “Thank you for your words of support today. They listened to us.”

Some in the music community, while happy about the news, were concerned that it took an artist as big as Swift to complain before action was taken. As you may recall, we ran a story early last week that shared the concerns from numerous people in the indie music community. Those same concerns were shared on countless blogs and news outlets, but it seems Apple didn’t think to respond until Taylor Swift made it a point to get involved. To his credit, Cue told Billboard he had heard “concern from a lot of artists” before hearing from Swift. You can draw your own conclusions as to whether or not that had the same impact.

Apple will be eating the cost of the royalty payout, as the company intends to not charge any consumer for using the service during its first 90-days of existence.  That will no doubt be a big bill to pay, but considering the company is expected to be valued at $1 trillion by 2016 it seems like a tab they will be able to cover.

Apple Music is set to launch on June 30, and we are planning to run an editorial with our initial impressions not long after. For now, spread the word of the new royalty plan so artists make a it a point to claim their Apple Music Connect profile as soon as possible.

James Shotwell is the Marketing Coordinator for Haulix. He is also a professional entertainment critic, covering both film and music, as well as the co-founder of Antique Records. Feel free to tell him you love or hate the article above by connecting with him on Twitter. Bonus points if you introduce yourself by sharing your favorite Simpsons character.

Categories
News

Taylor Swift Writes Open Letter To Apple Regarding New Royalty Plan

Music industry queen Taylor Swift shared a letter to Apple with fans via Tumblr over the weekend. We loved her insight and couldn’t resist sharing here thoughts here. Enjoy.

I write this to explain why I’ll be holding back my album, 1989, from the new streaming service, Apple Music. I feel this deserves an explanation because Apple has been and will continue to be one of my best partners in selling music and creating ways for me to connect with my fans. I respect the company and the truly ingenious minds that have created a legacy based on innovation and pushing the right boundaries.

I’m sure you are aware that Apple Music will be offering a free 3 month trial to anyone who signs up for the service. I’m not sure you know that Apple Music will not be paying writers, producers, or artists for those three months. I find it to be shocking, disappointing, and completely unlike this historically progressive and generous company. 

This is not about me. Thankfully I am on my fifth album and can support myself, my band, crew, and entire management team by playing live shows. This is about the new artist or band that has just released their first single and will not be paid for its success. This is about the young songwriter who just got his or her first cut and thought that the royalties from that would get them out of debt. This is about the producer who works tirelessly to innovate and create, just like the innovators and creators at Apple are pioneering in their field…but will not get paid for a quarter of a year’s worth of plays on his or her songs.

These are not the complaints of a spoiled, petulant child. These are the echoed sentiments of every artist, writer and producer in my social circles who are afraid to speak up publicly because we admire and respect Apple so much. We simply do not respect this particular call.

I realize that Apple is working towards a goal of paid streaming. I think that is beautiful progress. We know how astronomically successful Apple has been and we know that this incredible company has the money to pay artists, writers and producers for the 3 month trial period… even if it is free for the fans trying it out.

Three months is a long time to go unpaid, and it is unfair to ask anyone to work for nothing. I say this with love, reverence, and admiration for everything else Apple has done. I hope that soon I can join them in the progression towards a streaming model that seems fair to those who create this music. I think this could be the platform that gets it right.

But I say to Apple with all due respect, it’s not too late to change this policy and change the minds of those in the music industry who will be deeply and gravely affected by this. We don’t ask you for free iPhones. Please don’t ask us to provide you with our music for no compensation.

Taylor

Exit mobile version