Avril Lavigne’s $2 Million YouTube Payday:
Not Coming Soon
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Conventional wisdom on YouTube: Eyeballs go in, but no money comes
out. Google can’t figure out how to sell ads against the videos it
shows, so the people who make YouTube’s videos aren’t getting any money
out of it. Not true, says Terry McBride, who runs both a music label and management business under the umbrella of Nettwerk Music Group:
There’s plenty of cash. For instance, he told a London music conference
this month, pop star Avril Lavigne, who Terry manages, is going to make
a mint: ”There’s about a $2 million cheque waiting for her for all her YouTube plays.”
How’s that going to work? We called Terry to ask. The answer: He’s not quite sure.
Here is Terry’s basic math: By his count, Avril has already
generated some 200 million streams on YouTube. He thinks, but doesn’t
know, that YouTube is paying out between $0.005 and $0.008 in revenue
share each time it streams an officially licensed video. If YouTube is
paying out 0.8 cents per stream, it means it is already on the hook for
$1.6 million. And Avril will certainly keep cranking out videos, and
streams, for some time to come. So there’s definitely money there. {read more @ Silicon Alley Insider]
