It argues that YouTube is only generating average revenues of $1 per user.
The International Federation of the Phonographic Industry has hit back at YouTube’s claim that $1 billion of ad revenue went to the music industry over the past 12 months.
The claim was made on Tuesday (December 6) in a blog post by YouTube’s chief business officer Robert Kyncl, who said that the amount demonstrated that “multiple experiences and models are succeeding alongside each other.”
The IFPI disputed Kyncl’s claims in its own statement, saying:
“Google has today issued more unexplained numbers on what it claims YouTube pays the music industry. The announcement gives little reason to celebrate, however. With 800 million music users worldwide, YouTube is generating revenues of just over US$1 per user for the entire year.
“This pales in comparison to the revenue generated by other services, ranging from Apple to Deezer to Spotify. For example, in 2015 Spotify alone paid record labels some US$2 billion, equivalent to an estimated US$18 per user.”
The IFPI added that YouTube is “not paying artists and producers anything like a fair rate for music,” and that it highlighted “the “value gap” that is denying music rights holders a fair return for their work.”
Speaking to Pitchfork, a YouTube spokesperson reiterated the point made in Kyncl’s original blog post where he said: “As more advertising dollars shift from TV, radio and print to online services, the music industry will generate even more revenue from ads.
“To achieve this, there is a lot of work that must be done by YouTube and the industry as a whole, but we are excited to see the momentum.”
Earlier this year, artists including Paul McCartney, Vince Staples and Taylor Swift signed a petition demanding changes to the Digital Millennium Copyright Act (DMCA) that protects tech companies from the acts of users illegally uploading copyrighted content.