Google has recently revealed that it paid almost $3 billion, three times more than 2014 ($1 billion), to YouTube content creators in terms of ad revenue.
Frances Moore, Chief Executive of IFPI responded to Google’s Anti-Piracy Paper.
“We welcome Google’s recognition that it and Google’s YouTube need to operate responsibly and properly value creators and their work. However, the figures in Google’s anti-piracy paper don’t match our own. It is difficult to get any clarity on Google’s claims as it doesn’t explain its methodology, but IFPI data shows that revenue returning to the record industry through video streaming services (including but not limited to YouTube) with 1.3 billion users amounted to US $856 million in 2017 which is less than half of Google’s claim and less than US $1 per user per year. By contrast, a much smaller user base of 272 million users of audio subscription services (both paid and ad-supported), which don’t misapply the ‘safe harbour’, compensated creators some US $5.6 billion a little more than US$20 per user per year. This is the reality of the ‘value gap’ in which user-upload platforms, such as YouTube, exploit music for profit without returning fair compensation to music creators.”
According to estimates published in IFPI’s Global Music Report 2018, YouTube has attracted 46% of all music streaming listening time around the world last year (excluding China). IFPI recognises “value gap” as the biggest policy challenge for the global music industry. “The sustainable and balanced growth of the digital content market continues to be undermined by a fundamental flaw in legislation underpinning the market that has created a ‘value gap’, a mismatch between the value that online user upload services, such as YouTube, extract from music and the revenue returned to the music community.”- the report stated.