YouTube is becoming a leading platform for both music enthusiasts and artists thanks to the growth of its premium subscription plan. According to the latest company announcement, YouTube paid $4 billion to the music industry over the last year, 9to5google reports.
This is a huge amount of money for a platform like YouTube, and it proves the company is in the right way. Moreover, 30% of this $4 billion is from user-generated content. YouTube says UGC content has “become a meaningful and incremental source of revenue alongside premium music content.”
“Our goal is to become the leading revenue generator for the music industry and to help artists around the world build a career making music. We are uniquely positioned to achieve this goal because YouTube monetizes the end-to-end music experience globally” Head of Music Lyor Cohen noted in his blog post.
YouTube music is experiencing huge growth both at payments and premium users
YouTube’s stunning growth is not just about paying for the music industry. In the first quarter of 2021, the company could attract paid subscriptions more than any other quarter in its history. In Q3 2020, Google claimed they could sell the subscription to over 30 million users.
Cohen believes this is “twin-engine growth.” Also worth noting is that it happened through YouTube’s ad-supported free tier in 180 countries. As well as subscription tiers in 96 countries. Currently, over 2 billion users watch music videos on YouTube every month. In another part of the post, Cohen mentions their plans for monetizing music through different Google platforms and services.
Advertising has good money, but it is not the only source of income
Such exciting growth will attract the attention of advertisers as well. Advertising is now one of YouTube’s primary sources of revenue. Moreover, Cohen knows YouTube as the “world’s largest stage,” and advertisers can’t find such users and music engagement anywhere else.
Of course, YouTube is also thinking about diversifying its revenue sources. Selling direct-to-fan products like ticketing, merch, memberships, paid digital goods, and virtual ticketed events are YouTube’s plans for making more money along with advertising.
Cohen says the BLACKPINK’s paid virtual concert could sell 280,000 channel memberships across 81 countries. It also helped the owners to add 2.7 million new subscribers to their channel.