O YouTube announced this Wednesday (2) that it paid US$4 billion (about R$20 billion) the music industry in the last 12 months. The communiqué signed by Lyor Cohen, YouTube’s Global Head of Music, claims that of the $4 billion total, 30% is user-generated content (UGC). YouTube added more paid members in the first quarter of 2021 than in any quarter since the platform’s launch.
“Many of my friends in the music industry asked why I came to work for YouTube. Even today – after 40 years working with music – my 90-year-old mother still asks me what I do for a living. I came to work for YouTube because I believe in its potential to help usher in a golden era for the music world.. I’m very proud to share that YouTube has paid over $4 billion to the music industry in just the last 12 months and added more paying members in the first quarter of 2021 than in any other quarter since launch.
The executive highlights the ambition of the audiovisual platform: “our goal is to become the main revenue generator for the music industry and help artists around the world build a career making music. We are uniquely positioned to achieve this goal because YouTube globally monetizes the end-to-end music experience.”
Accelerating the growth of two engines
Through the free tier with ad support in 180 countries and subscription tiers in 96 countries, YouTube gives users the option to pay with their attention or with their wallets. “YouTube is the biggest stage in the world, and advertisers are eager to explore the deep engagement with music that the platform enables,” the statement said. More than 2 billion users watch video clips monthly on the platform.
Monetization of all musical experiences
YouTube highlights that premium music content and user generated content (UGC) are growing and bringing significant value to the industry. Whether it’s the premiere of the hottest new music video seen on TV or the latest viral dance challenge, revenue is generated for artists, songwriters and rights holders.
Growing Visions and Revenue with Exclusive Fan Content
Of the more than $4 billion generated for artists, songwriters and rights holders in the last 12 months, more than 30% came from the UGC. Fan-driven videos have always flourished on YouTube, helping artists grow their audience and release music around the world. “We are excited that it is now also becoming a significant and incremental source of revenue, along with premium music content,” says Cohen.
Finding new sources of revenue
BLACKPINK’s paid virtual show – THE SHOW – has almost sold out 280.000 tickets to channel members in 81 countries and helped the group gain 2.7 million new subscribers to its official artist channel, according to YouTube which affirms the strategy of innovating fan-directed products such as tickets, merchandise, memberships, paid digital products and virtual ticketing events.
“Building the best music experience for fans and empowering all artists to develop their careers is essential for us. I couldn’t be more excited about the future of the music industry. These days, when my mom asks me what I do for a living, I tell her I’m helping to make sure the next Kurt Cobain doesn’t have to become a dentist,” jokes the executive.
Recently the beta version of YouTube Shorts, platform solution that competes directly with TikTok as it is a short video format, it announced the launch of YouTube Shorts Fund, a fund of $100 million (about R$ 530 million) distributed throughout 2021-2022. Learn more details by clicking here.