YouTube fan videos earn labels more than official clips
Record labels make more money from fan-made videos uploaded to YouTube than they do from their official music videos, according to Francis Keeling, the Global Head of Digital Business for Universal Music Group.
While fan-made videos used to be seen as a breach of copyright by both labels and YouTube, and swiftly removed, a change in thinking and increased attempts to monetise content now means that rather than YouTube simply removing offending videos, record companies are instead notified when a user uploads copyrighted content. The label can then choose to place advertising before the video, making royalties from the views.
“It’s a massive growth area”, Keeling said. “We’re very excited about the creativity of consumers using our repertoire and creating their own versions of our videos,” he adds.