Simple math FAIL on YouTube revenue… Good Grief…

Music Technology Policy

According to the Washington Post’s Caitlin Dewey in her reporting about Google’s January 22 Q4 earnings call:

Youtube has become one of the biggest forces behind Google’s growth, said Nikesh Arora, Google’s chief business officer.

Viewers watched an average of 4 billion hours of video a month in 2012. Gangnam Style, the most-watched video of all time, earned $8 million in advertising revenue — or roughly 65 cents a play, Quartz calculates.

So let’s see–the “Gangnam Style” official video has as of a few minutes ago gotten 1,238,957,445 views on YouTube.  This doesn’t count all the unofficial monetized versions of the video which also have a bunch.

So let’s see–$8,000,000 divided by 1,238,957,445–even without doing the math, a simple country lawyer like me can see that it’s not possible for the per-view payment to be anything remotely close to $0.65.  (And given that a single track mp3 download on…

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4 thoughts on “

    1. It’s not even close to $0.65. From the article: “There’s a long way between $0.65 and $0.000702.”.

  1. What would be fair is a 50/50 split of whatever revenue the commercial at the beginning pays (that annoying ad before the video), because after all, it’s the content that draws the viewer so that the commercial can be focused…At least that’s the argument YouTube is probably using in order to charge the advertiser more to be in front of a popular video…
    I’m not holding my breath…

    1. Why should YouTube get 50%? Apple and Spotify only take 30% of gross. Apple is completely transparent. Spotify not so much.

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