Youtube involved the music industry in the past twelve months with a distribution of approximately one billion US dollar on the achieved advertising revenues. Youtube Chief Business Officer Robert Kyncl optimistic about the future as the music industry will be able to generate even more revenue from advertising.
Youtube has paid more than a billion dollar in the past twelve months of the music industry, which were taken from advertising. That on Tuesday on his own, the company blog announced. The funds come from advertising through the automated content ID system. In this case, songs are recognized automatically and then advertising banners are displayed, if the rights holders so wish. The revenues from the switched advertising banners then go largely to the rights holders and to the Youtuber.
“This is just the beginning – as more and more advertising funds from television, radio and print media migrate to online services, the music industry will generate even more sales from advertising,” said Robert Kyncl
“In the future, the music industry will have the opportunity to become more and more similar to television, where business model and advertising contribute roughly equal shares to the revenues, which in turn are supported by digital and physical sales in the music industry,” Kyncl continued.
According to market researchers Midia the billion dollars is about one-quarter of all disbursements from Youtube since 2007. According to the data, the amount MIDIA 2015 (740 million US dollars) increases dividends in 2016 compared to the year by about a third. The blog entry of Robert Kyncl argues that the distributions show that the advertising model with the banners was a mainstay of the music-streaming landscape.
“It is clear that the creative industry has powerful growth engines – subscriptions and advertising – and we Look forward to participating. ” he added.