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, 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

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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