Move over Spotify, YouTube is saving the music industry

YouTube’s global head of music Lyor Cohen has revealed the platform put more than $4 billion in the pockets of artists, songwriters, and rights-holders during the past 12 months. 

In a June 2 letter shared with the music industry, Cohen said the money fueling YouTube’s payout came through the dual channels of YouTube ads, and YouTube Music and YouTube Premium subscriptions.

YouTube generated $19.78 billion from advertising during 2020, making its payment to the music industry about 20 percent of advertising revenue. 

Cohen stated that YouTube’s aim is “to become the leading revenue generator for the music industry and to help artists around the world build a career making music,”

Cohen noted the Google Alphabet-owned company added more paid “members” in Q1 2021 than it has during any quarter since launch. 

Has the COVID-19 pandemic driven more streams?

Staying at home during coronavirus lockdowns has meant many of us have increased our use of YouTube – which has increased their profits.

When compared to previous years, YouTube paid the music industry $3 billion in 2019, according to the company.

Among its most significant revenue-generators, user-generated content on YouTube accounted for more than 30 percent of the $4 billion it paid to the music industry in the last 12 months, Cohen stated in the letter.