Youtube on Music Industry backlash:
“We give more money to creators than any platform”.
Growing backlash from record labels and artists over music streams prompted Youtube’s head of international music partnerships, Christophe Muller, to write a column in The Guardian last Thursday.
“Lately there’s been a chorus of music label representatives and artists accusing youtube of mistreating musicians,” Muller writes, “As the music industry shifts from a business that mainly sold albums and singles to one that earns money from subscriptions and ads, there are bound to be disagreements.”
According to Muller, Youtube takes copyright management extremely seriously and that no platform, big or small, has given as much money back to creators across all kinds of content as Youtube has. Criticism of Youtube argue that Youtube has allowed a “flood” of unlicensed music on it’s platform, which in turn has deprived artists of their deserved revenue. However, thousands of labels and right holders have licensing agreements with Youtube that actually allows them to leave fan videos up so that they can earn revenue from them. They “see that fan-uploaded content can be a way to drive exposure and boost sales”.
Others claim that Youtube underpays when compared to subscription services such as Spotify. However, Muller would like them to remember that Youtube and Spotify are two completely different services. Spotify is a music subscription service that costs $10 a month, versus Youtube, which gains its revenue from ad-supported videos. In the words of Muller, “it’s like comparing what a black cab driver earns from fares to what they earn showing ads in their taxi”. Rather than comparing Youtube to Spotify, Muller argues that Youtube should be compared to Radio. Radio generates $35 billion of ad revenue a year, and pays nothing to labels and artists, but is excused because it is a good promotional tool. However, Youtube offers promotion, too, only it’s a promotion that pays. In fact, Youtube has paid out more than $3 billion to the music industry to date, and that number is growing significantly year on year. Youtube has also come out with Youtube Red, their own subscription service, so that they can drive even more revenue to musicians and songwriters. I found this article to be very interesting because we have discussed over and over in class about piracy and why Youtube is “excused” from intellectual property suits like piracy sites. This is good insight on Youtube’s business model and how they position themselves in terms of position in the industry, and what they bring to the table. Youtube is a “radio-like” platform, and their main purpose is exposure, and exposure will eventually drive sales.
source: http://www.theguardian.com/music/musicblog/2016/apr/28/youtube-no-other-platform-gives-as-much-money-back-to-creators

















