* MUST READ * YouTube’s Heartbreaking Extortion Of Musicians Begins… | Zoë Keating Explains New Rules

Below is the opener, after that – it gets worse…

“My Google Youtube rep contacted me the other day. They were nice and took time to explain everything clearly to me, but the message was firm: I have to decide. I need to sign on to the new Youtube music services agreement or I will have my Youtube channel blocked.
This new music service agreement covers my Content ID account and it includes mandatory participation in Youtube’s new subscription streaming service, called Music Key, along with all that participation entails. Here are some of the terms I have problems with:

1) All of my catalog must be included in both the free and premium music service. Even if I don’t deliver all my music, because I’m a music partner, anything that a 3rd party uploads with my info in the description will be automatically included in the music service too.

2) All songs will be set to “montetize”, meaning there will be ads on them.

3) I will be required to release new music on Youtube at the same time I release it anywhere else. So no more releasing to my core fans first on Bandcamp and then on iTunes.

4) All my catalog must be uploaded at high resolution, according to Google’s standard which is currently 320 kbps.

5) The contract lasts for 5 years.”

Seriously the whole post is an absolute must read, in full, probably at least two or three times to have it all sink in.

READ THE FULL POST ON ZOE KEATING’S BLOG:
http://zoekeating.tumblr.com/post/108898194009/what-should-i-do-about-youtube

Merlin on YouTube music payouts: “Their figures are by far the worst” | Music Ally

No surprise to us…

“The ironic thing is that the service that pays the least is the service that’s the most well funded and run by the biggest company in the world: their figures are by far the worst, whether you measure them on a per-stream basis or a per-user basis. I tend to get myself in trouble when I talk about that company…”

Hence his desire not to name them directly, but quote instead from an interview with Billy Bragg conducted by Music Ally earlier this year. “If we’re pissed off at Spotify, we should be marching to YouTube central with flaming pitchforks,” said Bragg – Caldas read this quote out before delivering his own pointed follow-up. “I can’t say Billy’s right, but I can say that he’s not wrong,” said Caldas.

READ THE FULL STORY AT MUSIC ALLY:
http://musically.com/2014/04/30/merlin-youtube-music-payouts-charles-caldas/

RELATED:

What YouTube Really Pays… Makes Spotify Look Good!

Artist Revenue Streams : Streaming Marketshare By Volume and Revenue (includes YouTube and Spotify)

Streaming Price Index : Now with YouTube pay rates!

 

Only 0.33% of YouTube Videos Generate 1 Million or more views… #SXSW

Only one third of one percent of all videos uploaded to YouTube generate 1m or more views. Tell us again about this internet empowerment…

Half Of YouTube Videos Get Fewer Than 500 Views | Business Insider

YouTube’s most-watched-video lists are full of viral hits and popular music videos. But the majority of videos uploaded to Google’s (GOOG) video site are hardly watched by anyone.

Some 53% of YouTube’s videos have fewer than 500 views, says TubeMogul. About 30% have less than 100 views. Meanwhile, just 0.33% have more than 1 million views.

And here’s another interesting stat, music is the #1 category accounting for over 30% of all views.

Inside YouTube Videos : Exploring YouTube videos and their use in blogosphere | Sysomos

Main highlights:

Music is the most popular category with 31% of all analyzed videos, followed by Entertainment (15%) and People & Blogs (11%).

There is no clear correlation between the rating of the video on YouTube and how often it is viewed. Videos with a rating more than 4 out of 5 usually have fewer views than those with medium rating score between 2 to 3.

Average length of a YouTube video is 4 minutes and 12 seconds.

The average number of views for the YouTube videos we analyzed is 99,160.

If there is an authoritative source of more current stats than these please let us know in the comments.

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 “Chilling Effects” of YouTube’s Internet Censorship and Lack of Transparency

We’ve been watching with interest a story developing over at Digital Music News. The site ran a guest editorial by Jeff Price promoting his new YouTube Content Management System Collections Service, Audiam.

It’s interesting to note how Price targets distribution companies as the black hats but does not criticize YouTube for their less than stellar “Openess and Transparency” with artists. East Bay Ray of The Dead Kennedys spoke to NPR about his frustrations with Google.

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

“Holiday in Cambodia” by the punk band Dead Kennedys has been streamed on YouTube over 2.5 million times. Guitarist Raymond Pepperell — also known as East Bay Ray — says, overall, Dead Kennedys videos have been watched about 14 million times. But the band has only seen a few hundred dollars.

“I don’t know — and no one I know knows — how YouTube calculates the money”

It’s easy to see why so many readers took exception to Price’s understanding of how YouTube monetization works (or actually doesn’t). One of those people wrote a response to Price’s editorial, Emmanuel Zunz of ONErpm.

Why Jeff Price Is Horribly Misinformed About YouTube Monetization…

If I understand Audiam’s business model correctly (I have tested the service), it’s a pure Content ID play.  So here is my first point: Audiam states that they pay artists 100% of the revenues they collect for them from their own channel.  But by generating UGC claims on their channels that pay out at 35% instead of the Standard 55% an artist can get on their own, they are actually reducing the amount of money a musician can make through a Standard direct deal with YouTube.

What follows is the real story about the lack of transparency and openess that Google claims is essential to a “free and open” internet. You know, the kind of “free and open” internet where you make the music, movies, books, photos, etc and Google is “free and open” to monetize it without restriction. “Permissionless Innovation” yo!

So apparently when Zunz was being transparent and open (um, without permission) about Google/YouTube payments and policies in his response to Price he got a little to close to home in revealing Google family secrets. The result was a panicked Zunz contacting Digital Music News to remove, retract and/or otherwise redact the information that Zunz had made public. Oooopsies…

YouTube Demands the Removal of a Digital Music News Guest Post…

According to ONErpm, YouTube has demanded that the entire guest post – here – be ripped down, which would obliterate nearly 100 comments and the knowledgebase that comes with that (not to mention the detailed information in the post itself).

But the story doesn’t end there. Zunz had already written a second a highly detailed post for Digital Music News detailing how YouTube monetization actually works! Unfortunately that “Open and Transparent” post is not going to see the light of day in educating musicians about the actual mechanics, percentages and payments by YouTube.

YouTube Successfully Intimidates a DMN Guest Contributor…

It’s called “the chilling effect”…

Despite serious threats, YouTube has been unsuccessful at removing an earlier article on Digital Music News about confusing royalty payouts and specifics.  But what they have been successful at is preventing the next one: a 4,000+ word, highly-detailed essay on YouTube best practices and royalties, from a company highly-specialized in YouTube distribution.

The company simply got spooked, and asked that we not print the piece for fear of having their MCN status revoked by YouTube.  So here’s what artists, labels, publishers, startups, and the industry is missing as a result.

So the next time someone wants to talk about the benefits of a transparent, free and open internet based in permissionless innovation it might be worth while to send them this post. After all wasn’t it Google Chairman Eric Schmidt who said, “If You Have Something You Don’t Want Anyone To Know, Maybe You Shouldn’t Be Doing It“?

So when Google protects it’s interests it’s “business” but when musicians protect their rights it’s “censorship”.

Where are the defenders of internet freedom when you need them? The crusaders against internet censorship are silent…