Avril Lavigne's $2 Million YouTube Payday?
July 28, 2008 at 5:04 AM (PT)
Conventional wisdom on YOUTUBE: Eyeballs go in, but no money comes out. GOOGLE can't figure out how to sell ads against the videos it shows, so the people who make YOUTUBE's videos aren't getting any money out of it, writes THE SILICON ALLEY INSIDER.
Not true, says TERRY MCBRIDE, who runs both a music label and management business under the umbrella of NETTWERK MUSIC GROUP, "There's plenty of cash." For instance, he told a LONDON music conference this month, pop star AVRIL LAVIGNE, who TERRY manages, is going to make a mint, "There’s about a $2 million check waiting for her for all her YOUTUBE plays.”
Here is TERRY's basic math: By his count, AVRIL has already generated some 200 million streams on YOUTUBE. He thinks, but doesn't know, that YOUTUBE is paying out between $0.005 and $0.008 in revenue share each time it streams an officially licensed video. If YOUTUBE is paying out 0.008 cents per stream, it means it is already on the hook for $1.6 million. And AVRIL will certainly keep cranking out videos, and streams, for some time to come. So there's definitely money there.
Check out the full article here.