Yt spotify drivers#
Yt spotify driver#
Yt spotify full#

The new Shorts revenue-sharing program gives the platform a real edge over TikTok, which is great for going viral, but not as great for building audiences and earning direct revenue. On YouTube, creators can now either pay an upfront fee for the music, or share a portion of their ad revenue with music rightsholders - opening an entirely new revenue stream for the music industry. There is a huge, untapped opportunity to streamline “micro-licenses” for creators using music in their monetised content, who are not served by the traditional (time-consuming, expensive, guarded) sync industry. This week, that included two key features: streamlined music licensing for long-form videos, and a revenue-sharing program for Shorts creators.

Yt spotify full#

What is so groundbreaking about YouTube’s approach is actually really simple: all of their innovations focus on helping creators and artists earn money, full stop. The figures presented in this report are retail values and in billions of US dollars unless otherwise stated.Īrtists and creators will follow the money

Yt spotify drivers#

This report presents the key figures, trends and drivers of MIDiA’s music forecast model. Volume Trumps Value as Emerging Markets Dominate Growth MIDiA Research 2020-2027 Global Music Forecasts Finally, this history gives YouTube the advantage of a deep understanding of creators’ needs - chief among them, money. Its strength in UGC also helps YouTube attract gen Z, while Spotify’s core base of millennials are beginning to age.

What has changed, and in YouTube’s favor, is that this level of engagement “has become mission critical” for artists. The launch of its Partner Program in 2007 made it one of the first places where creators could make money by creating content online. As YouTube’s global head of music, Lyor Cohen, noted in an open letter this week, YouTube has facilitated a “two-way street” between creators and their audiences since its founding back in 2005. Still, that 30% represents a secret weapon that sets YouTube apart from Spotify, and will likely become even more important. YouTube’s payments to the music industry rose by 50%, but the proportion made up by UGC - 30% - did not change. As UGC and non-DSP streaming become increasingly integral to the music industry, this could be enough to tip the balance in YouTube’s favor.

No wonder that 30% of YouTube’s contribution to music rightsholders came from user-generated content (UGC). Yet YouTube has something that Spotify does not: a more than decade-old creator proposition and a proven ability to actually help creators make money, which the company is now doubling (if not quadrupling) down on. While YouTube paid out $6 billion to the music industry in the 12 months ending in June 2022 - a 50% increase year-over-year - Spotify paid out $7 billion in royalties to the music industry in 2021, up 40% from 2020. The clock is ticking, and although YouTube is the most popular platform for music listening globally (55% of consumers watch music videos on YouTube, compared to 24% who listen to Spotify), it still has a significant way to go towards translating that dominance to revenue.

Yt spotify driver#

YouTube has not been quiet about its ambitions to overtake Spotify as the music industry’s top revenue driver by 2025.