Streaming Price Index : Now with YouTube pay rates! #SXSW

Is this the future of music? We continue to look at artist revenue streams.

If you’re heading out to any panels at SXSW this week, you might want to keep this handy when you’re being told how much money you can make… And if the services at the top of the list like Nokia, Google Play and Xbox Music can pay more per play, why can’t the services at the bottom of the list like Spotify and YouTube?

We’ll give you a hint, the less streams/plays there are the more each play pays. The more plays there are the less each stream/play pays. Tell us again about how these services will scale. Looking at this data it seems pretty clear that the larger the service get’s, the less artists are paid per stream.

So do you think streaming royalty rates are really going to increase as these services “scale”? No, we didn’t either.

StreamingPriceIndexwYOUTUBE

* YouTube payment includes gross payable to single party uploader claiming 100% of rights including video, master and publishers. There should also be additional PRO money earned however we haven’t been able to get any reporting to date.Our YouTube pay rate calculations can be found here:What YouTube Really Pays… Makes Spotify Look Good!

What YouTube Really Pays… Makes Spotify Look Good! #sxsw

Is this the future of music? We continue to look at more artist revenue streams.

We’ve been waiting for someone to send us this kind of data. This info was provided anonymously by an indie label (we were provided screenshots but anonymized this info to a spreadsheet). Through the cooperative and collaborative efforts of artists such as Zoe Keating and The Cynical Musician we hope to build more data sets for musicians to compare real world numbers.

In our on going quest for openness and transparency on what artists are actually getting paid we’d love to hear from our readers if their numbers and experience are consistent with these numbers below. At the very least, these numbers should be the starting point of larger conversations for artists to share their information with each other.

Remember, no music = no business.

whatyoutubereallypaysFor whatever reason there appear to be a lot of unmonetized views in the aggregate. So let’s just focus on the plays earning 100% of the revenue pool in the blue set. These are videos where the uploader retains 100% of the rights in the video including the music, the publishing and the video content itself.

Plays  Earnings  Per Play
2,023,295 $3,611.84 $0.00179
1,140,384 $2,155.69 $0.00189
415,341 $624.54 $0.00150
240,499 $371.47 $0.00154
221,078 $313.47 $0.00142
TOTALS TOTALS AVERAGE
4,040,597 $7,077.01 $0.00175

So it appears that YouTube is currently paying $1,750 per million plays gross.

We understand that people reading this may report other numbers, and that’s the point. There is no openness or transparency from either Spotify or YouTube on what type of revenue artists can expect to earn and under what specific conditions. So until these services provide openness and transparency to musicians and creators, “sharing” this type of data is going to be the best we’re going to be able to do as East Bay Ray comments in his interview with NPR.

As we’re now in a world where you need you need a million of anything to be meaningful here’s a benchmark of where YouTube ranks against Spotify.

Service  Plays  Per Play  Total  Notes 
Spotify To Performers/Master Rights 1,000,000 0.00521 $5,210.00 Gross Payable to Master Rights Holder Only
Spotify To Songwrtiers / Publishers This revenue is for the same 1m Plays Above 0.000521 $521.00 Gross Payable to Songwriter/s & Publisher/s (estimated)
YouTube Artist Channel 1,000,000 0.00175 $1,750.00 Gross Payable for All Rights Video, Master & Publishing
YouTube CMS (Adiam / AdRev) ** 1,000,000 0.00032 $321.00 Gross Payable to Master Rights Holder Only

The bottom line here is if we want to see what advertising supported free streaming looks like at scale it’s YouTube. And if these are the numbers artists can hope to earn with a baseline in the millions of plays it speaks volumes to the unsustainability of these models for individual creators and musicians.

Meet the New Boss: YouTube’s Monopoly on Video | MTP

It’s also important to remember that the pie only grows with increased revenue which can only come from advertising revenue (free tier) and subscription fees (paid tier). But once the revenue pool has been set, monthly, than all of the streams are divided by that revenue pool for that month – so the more streams there are, the less each stream is worth.

All adrev, streaming and subscription services work on the same basic models as YouTube (adrev) and Spotify (adrev & subs). If these services are growing plays but not revenue, each play is worth less because the services are paying out a fixed percentage of revenue every month divided by the number of total plays. Adding more subscribers, also adds more plays which means that there is less paid per play as the service scales in size.

This is why building to scale, on the backs of musicians who support these services, is a stab in the back to those very same artists. The service retains it’s margin, while the artists margin is reduced.

[** these numbers from a data set of revenue collected on over 8 million streams via CMS for an artist/master rights holder]

RELATED:

Streaming Price Index Updated 2014 : Per Stream Pay Rates

Music Streaming Math, Can It All Add Up?

YouTube Shares Ad Revenue With Musicians, But Does It Add Up? | NPR

The DMCA is not an Alibi: The Googlization of Art and Artists

Music Technology Policy

[We first posted this in October 2006.  How little has changed in 8 years.  According to Google’s most recent Transparency Report, Google receives 20 million take down notices a month for search alone.

torrentz eu

google takedowns]

[Ed. Charlie says:  This was a preamble to the 2011 posting of Chris Castle’s 2006 article “The DMCA Is Not An Alibi”.  Google recently published its 2011 “Transparency Report” which has a couple interesting facts regarding takedown notices it received.  Despite the $500,000,000 forfeiture by Google when it was caught in seven different sting operations profiting from the sale of controlled substances online, there is only one reference to takedown notices relating to drugs in the report–from South Korea.  “[A] request from the Korean Food and Drug Administration (KFDA) resulted in the removal of 441 ads that violated KFDA regulations.”  And the only country in the world where Google received a “content removal notice” that…

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UNSOUND @SXSW Meet Filmmaker Mikael (Count) Eldridge #SXSW

Filmmaker, producer and musician Mikael (Count) Eldridge will be speaking at SXSW Monday about new tech, start ups, and the impact on creators.

http://schedule.sxsw.com/2014/events/event_OE02908

Monday, March 10  | 2:00PM – 3:00PM
Austin Convention Center | Next Stage EH 3/4
500 E Cesar Chavez St

From the forthcoming documentary Unsound: Bad Religion guitarist and Epitaph Records founder Brett Gurewitz talks about how large tech corporations make millions of dollars selling advertising- essentially making people the product, without them even realizing. The promise of free or cheap music is often used to draw eyeballs to websites, apps, and social networking platforms, allowing corporations to make large amounts of money from advertising. The public is generally unaware and happy to have free/cheap music, corporations make tons of money from advertising, but how is the musician benefiting from this?

LEARN MORE HERE:
https://www.facebook.com/unsoundthemovie

Unsound uncovers the dramatic collapse of the music industry and its impact on musicians and creators of all kinds trying to survive in the ‘age of free’.

RELATED:

“Zoe Keating on How Big Business Wins…”| UNSOUND Little Cast

Reality for Indie Artists : Zoë Keating’s Annual Music Sales & Streaming Data @SXSW #SXSW

Zoë Keating released her Annual Music Sales & Streaming Data Spreadsheet a little bit ago and we stayed out of the fray, although we did also publish an update of the Music Streaming Price Index for 2014 as well.

This quote from Zoë in a follow up post about her open and transparent sharing of information on Hypebot got our attention.

I want you to know that I don’t release these numbers as a marketing tool. I’ve always tabulated stuff as part of doing my annual accounting and last year I decided to make a portion of them public. Music commentators were saying, over and over, that artists are not making a living selling music, they make all their money touring, etcetera etcetera. I noted that in my case that wasn’t true and never had been. In the commentary I wasn’t seeing a lot of actual numbers from artists and thought I’d offer some details of how it all works for me: a non-labeled artist whose career has existed entirely in the internet-age.

It’s curious to us that someone would insinuate the motivation behind sharing information in an open, human and transparent way was an attempt at self serving marketing. Shame on those who have made such comments. Zoë should be celebrated for doing what the interweb companies claim to do, and ask others to do, but do not do themselves.

We also found the following statement to be true of our experience of the vast number of artists we hear from who report similar experiences with streaming services ranging from Spotify to YouTube. These services only financially serve the very large artists and the very large labels. In other words, Spotify, YouTube and the like have not empowered artists towards financial freedom and very well appear to be achieving the very opposite.

Meanwhile yes, the big money is to be made at the top of the tail…and therein lies the promise of commercial music streaming services. It will be financially valuable to those who make hits and those who aggregate legions of artists. For a single artist like me commercial streaming will never be more than promo. I accept that. But will keep talking about it until streaming companies do more to make that promo more useful (i.e data).

But there appears to be more to this story. In this recently posted video clip by “Unsound” documentary  filmmaker Mikeal Eldridge, Zoë reveals that she has dug a bit deeper into the realities of streaming economics noting that the more streams that are served, the less the artists makes per stream. Again, this is consistent with her observation that “the promise of commercial music streaming services… will be financially valuable to those who make hits and those who aggregate legions of artists.”

We’ve yet to see anyone propose how streaming can actually scale and be sustainable for artists. We love streaming services, what we don’t like are the economics.

92% of Zoë’s recording income is from transactional digital sales. If these streaming businesses are claiming to be the future, the question to ask is whose future?

Downloads Streams Total % Downloads
$75,341 $6,380 $81,721 92%

RELATED:

Music Streaming Math, Can It All Add Up?

Why Spotify is not Netflix (But Maybe It Should Be)

Musicians POV: Spotify Isn’t Good for You – Full Post

On Spotify (and Why I’m not a Conspiracy Theorist After All) | Tape Op

The real reason why the major labels love Spotify | Guardian UK

Safe Harbor Not Loophole: Five Things We Could Do Right Now to Make the DMCA Notice and Takedown Work Better

The Trichordist

There has been considerable discussion about how the DMCA notice and takedown procedures are “broken.”  We don’t think that this is quite true—the procedures are manipulated, misunderstood and abused on a grand scale.  That doesn’t mean that the notice and takedown procedure is “broken” any more than the laws against burglary, theft and tax evasion are “broken.”  No statute can control unethical behavior by those who use the law as a flimsy excuse to get away with bad behavior.

Many Internet companies have interpreted the DMCA to permit bad behavior until the victim of the bad behavior notified the bad actor that they were behaving badly—each time they behaved badly.  This “catch me if you can” interpretation of the DMCA was not at all what the Congress had in mind.  We would go further and suggest that not only was it not what the Congress had in mind, it also wasn’t what…

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DMCA Safe Harbor is NOT a “License to Infringe”

The Trichordist

Thanks to Music Tech Policy for alerting us to this post from The Association of Independent Music Publishers:

Apparently, some internet users interpret the DMCA “safe harbor,” which is designed to strike a balance between copyright and technology, as something quite different, a “license” to post anything you like, even if you know it is infringing, unless and until the copyright owner complains.

The distinction may seem small, but it may represent how the general public regards copyright on the internet.  Instead of avoiding infringement and respecting copyright, the concept of the “DMCA License” is that you don’t have to respect copyright.  Do what you like, and at the worst the copyright owner might force your ISP to remove the material.

There is no such thing as a “DMCA License” because under the DMCA, copyright owners are not in any way consenting to unauthorized use.  They are simply trying to…

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Text of Songwriter Equity Act of 2014

Music Technology Policy

[Congressional Bills 113th Congress]
[From the U.S. Government Printing Office]
[H.R. 4079 Introduced in House (IH)] 113th CONGRESS 2d Session H. R. 4079 To amend title 17, United States Code, to ensure fairness in the establishment of certain rates and fees under sections 114 and 115 of such title, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES February 25, 2014 Mr. Collins of Georgia (for himself and Mrs. Blackburn) introduced the following bill; which was referred to the Committee on the Judiciary _______________________________________________________________________ A BILL To amend title 17, United States Code, to ensure fairness in the establishment of certain rates and fees under sections 114 and 115 of such title, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Songwriter Equity…

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What ASCAP Members Need to Know About the Songwriter Equity Act and What You Can Do | ASCAP

Songwriters, composers and music publishers earn royalty income through two separate rights: the right to publicly perform their music works, and the right to make reproductions of those works and distribute those reproductions.

However, two outdated portions of the Copyright Act, Section 114(i) and Section 115, prevent songwriters and composers from receiving royalty rates that reflect fair market value for the use of their intellectual property. This has created inequity in the marketplace that harms America’s songwriters, composers and music publishers in the digital age. Now is the time to fix it.

READ THE FULL POST AT ASCAP:
http://www.ascap.com/playback/2014/02/action/songwriter-equity-act.aspx