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Fan Videos Generating More Label Revenue Than Official Music Videos
Worldwide Music Revs Down 3.9%
March 20, 2014 at 6:35 AM (PT)
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The annual Digital Music Report released TUESDAY by IFPI has found that "the recording industry is making more money from fan-made mashups, lip-syncs and tributes on YOUTUBE than from official music videos."
“It’s a massive growth area. We’re very excited about the creativity of consumers using our repertoire and creating their own versions of our videos,” UMG Global Head Of Digital Business FRANCIS KEELING told OURWINDSOR.CA.
YOUTUBE, owned by GOOGLE, monitors uploaded videos and alerts record companies when a user uploads content that uses a copyrighted song. The report explains, "Rather than order the video removed for copyright infringement, the record company can instead choose to run ads before and during the video, making money off the video’s views. For example, a video of American comedian STEVE KARDYNAL wearing a bikini and lip-synching CARLY RAE JEPSEN’s 'Call Me Maybe' for unsuspecting viewers on CHATROULETTE racked up more than 14 million views, which earned ad dollars for the record label behind JEPSEN’s hit single."
KEELING added that the reason for the increased revenue is, "consumers putting more and more repertoire and new versions up there, but also it’s YOUTUBE getting better at advertising.”
THE NEW YORK TIMES also covers the INTERNATIONAL FEDERATION OF THE PHONOGRAPHIC INDUSTRY data, noting "wholesale revenue from recorded music around the world in 2013 fell by 3.9% compared with the year before, to $15 billion. Beneath that number, however, is a complex picture that shows how the recorded music business is trying to reverse its fortunes, which have been slipping since a peak of $27.6 billion in 1999, according to the trade group, which is based in LONDON."
Some of the reports highlights:
- Digital sales grew 4.3% around the world
- There was a 51% increase in revenue from subscription services
- Income from services such as SPOTIFY, DEEZER and RHAPSODY exceeded $1 billion for the first time last year
- Sales of physical formats such as CDs, which still supply about 51% the industry’s trade revenue, fell by 11.7% last year. Downloads were off by 2.1%

