Report: YouTube Viewing Up, Payments Down
July 15, 2016 at 2:20 PM (PT)
The music industry has GOOGLE's YOUTUBE in its crosshairs, arguing the service is building up its consumer base off the backs of hard-working musicians, and the latest data may be proving them right.
According to the FINANCIAL TIMES, using data from MIDIA RESEARCH, content owners are receiving a lower royalty rate for every video view than ever before. FINANCIAL TIMES industry analyst MARK MULLIGAN reports that the per view rate was actually cut in half from 2014 to 2015, and is now down to around $0.001. YOUTUBE still pays the music industry more money than ever, with almost $2 billion in payments since 2014.
Indications are that YOUTUBE isn’t nearly as powerful as it once was, and that its popularity for music delivery is waning. According to a recent BUZZANGLE report, for the first time streaming actually outpaced music video views, with the number of streams at 114 billion and video views at around 97 billion.
What’s more, according to the GLOBALWEBINDEX study, young people between 16 to 24 are more willing to pay for streaming than older adults, despite indications that only 1 in 10 digital consumers end up paying for streaming music overall.
The industry's latest gripe is over YOUTUBE’s CONTENT ID, which it claims catches only 60 to 80% of illegally uploaded content. YOUTUBE, on the other hand, has just released a document with some real numbers claiming that CONTENT ID is over 98% effective.
The most important thing the music industry wants is a more favorable advertising split. YOUTUBE’s 55/45 (55% to the copyright holder, usually the record label) is way below the 70%+ industry standard and continues to be a major bone of contention.
It's still looking like streaming has won the war against the free offerings of YOUTUBE. The gap will only widen as users become acclimated to the benefits of the paid streaming model. When it comes to music, convenience always wins.