San Bruno, Calif. – Google’s (NASD: GOOG) YouTube says that artists and
labels can generate as much revenue from free, ad-supported music as they do
selling it, Evolver.fm reports.
Over the past year, labels have seen a 200%-300%
increase in the amount of revenue generated from free YouTube spins, the
company’s director of content partnerships, Chris Maxcy, told Evolver.fm.
This
growth was credited to factors including increased mobile viewing; more
profitable ad formats and productive sales teams; sharing of videos by curators
on blogs and social networks; and the Content ID system that lets labels
monetize user-uploaded songs.
"If you were to look at the numbers for Lady
Gaga, the number of views she gets on YouTube versus downloads that she gets on
iTunes, obviously, a single download on iTunes will pay her more than a single
view on YouTube," product manager Phil Farhi told Evolver.
"But when
you look at the traffic — the number of people that are coming back and
watching her videos over and over again, watching her videos before they
download the song, or discovering them on YouTube — you can see how that scale
can compete with a paid service."
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(Evolver.fm)
