Youtube flushes millions in profits into the music industry's coffers
YouTube is becoming increasingly lucrative for the music and media industries, as revenue continues to rise. Over the past few years, free, ad-supported online videos have evolved into a major economic sector.
YouTube is becoming increasingly lucrative for the music industry and the media sector as sales continue to rise. Many companies have already recognized the potential of YouTube for advertising purposes, Google spokesperson Stefan Keuchel told Pressetext. The platform enables companies to reach target groups that would otherwise be very difficult to reach. Free, ad-financed online videos have developed into a significant industry in recent years.
Industry insiders assume that Universal Music, for example, was able to generate a total of almost 100 million dollars in 2008 by offering video streams. The partnership between YouTube and the record company is made up of two areas: On the one hand, the music company earns from the advertising revenue generated by the music it posts itself; on the other hand, Universal shares in the revenue generated by uploaded user contributions to which the record label holds the rights. The Universal channel is one of the top YouTube channels.
Industry insiders assume that Universal Music, for example, was able to generate a total of almost 100 million dollars in 2008 by offering video streams. The partnership between YouTube and the record company is made up of two areas: On the one hand, the music company earns from the advertising revenue generated by the music it posts itself; on the other hand, Universal shares in the revenue generated by uploaded user contributions to which the record label holds the rights. The Universal channel is one of the top YouTube channels.
