YouTube has, over the years, become a free music service for thousands of people all across the globe. According to sources, three major record labels are considering their options to take off music videos from YouTube due to lack of revenue from Google and its slow paced efforts to add paid tiers and better monetize the service. With the labels having very little say in context to the platform’s grip on its ad policy, sales channel and monetization, the platform also pays the lowest royalty rate amongst its competitors with a split of 45% to YouTube and 55% to the respective label.
According to RIAA, out of the video sharing website’s $6.6 billion revenue last year, the music industry saw just $150 million of that. Although, the prior states that the net amount is “in the billions” without actually giving out any numbers.
In spite of YouTube being a significant source of income for the labels as it is still the platform where most people look up music, the labels are quietly increasing their support of other platforms like Vessel and Snapchat.
It would be truly worthwhile to see what fire these sparks are going to cause.