Well, it looks like the most popular video site on the Internet is making somebody money—but it might not be Google. Universal Music Group reports that YouTube is making them “tens of millions of dollars.”
Rio Caraeff, executive vice president of Universal Music Group’s eLabs and head of their digital group, told CNET:
[YouTube] is not like radio, where it’s just promotional. It’s a revenue stream, a commercial business. It’s growing tremendously. It’s up almost 80 percent for us year-over-year in the U.S. in terms of our revenue from this category.
The tens of millions are part of $100 million in video streaming revenue for the company. The money comes from not only a partnership with YouTube, but other sites including MTV, iMeem and MySpace. Three years ago, UMG made nothing from their videos.
While this is a good sign for YouTube in terms of growth and monetization, which has been a major focus for the site this year, as CNET points out, the results may be more about UMG’s efforts than YouTube’s:
Universal’s YouTube channel is overwhelmingly the largest on the video site. The record label is the all-time most viewed channel, with nearly 3 billion views. Second-place Sony BMG, the second largest recording company, trails by more than 2 billion views with 485 million total views.
Of the top 10 channels on YouTube, 7 are music related. They include channels from Warner Bros. Records, Soulja Boy, and Disney’s Hollywood Records.
Caraeff says that there’s also more to come:
“We’re working with them on a variety of new concepts and new businesses to take the groundwork we’ve done in the last year and half and do a lot more with it,” he added. “I wouldn’t expect to see us just do business with YouTube like we used to do.”
Earlier this month, YouTube also vowed that there would be more to come in terms of monetization for the site. Any guesses what we’ll see next year?
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13 comments on “YouTube Making Universal Music Money–What about Google?”
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Jason Kuiper Says:
December 19th, 2008 at 9:13 pm
Seems like there is money to be made everywhere.
Nicole Price Says:
December 20th, 2008 at 8:50 am
So be it. Can only improve the offerings. Anything to improve viewer satisfaction should be welcomed.
Nicole Price’s last blog post..Tips to Save Money During the Holidays
SEO Positive Says:
December 21st, 2008 at 4:38 am
Oh there is lots of money to be made over the internet. You just need to make the right contacts, and be innovative with your thinking.
SEO Positive’s last blog post..Google Christmas Spirit? or Clever Marketing Strategy?
AIDS Drugs Says:
December 21st, 2008 at 2:42 pm
I don’t understand why their succsus doesent mean google is doing well also? Google not only gets to display ad’s/happy users they can charge for this service specially at some point if they are not already.
Marketing With Paul Says:
December 21st, 2008 at 7:54 pm
Video advertising is definitely the way to make money online. I am currently working on one for my site that teaches how I make money online. YouTube is just one of those sites that allow you to clearly and visually represent your marketing message.
Marketing With Paul’s last blog post..The $1,000 Traffic Challenge!
thewutzupphilippines Says:
December 22nd, 2008 at 4:46 am
video ads are cool but some people don’t really have the time to watch them. However they can capture a market – those who are tired to read.
thewutzupphilippines’s last blog post..Sharon Cuneta supports reading program
Wii Fit Says:
December 22nd, 2008 at 6:07 am
This is the best way to make money online.
SEO Says:
December 22nd, 2008 at 7:40 am
Google wants to monopolize.
Nick Stamoulis Says:
December 22nd, 2008 at 9:17 am
Video is still in it’s infancy stage. This channel is only going to grow in the very near future.
Takumi86 Says:
December 26th, 2008 at 8:39 am
Outstanding Post!! I can take advantage from my Youtube account by using this tips, thank you so much
Takumi86′s last blog post..Happy Holidays!
Rob Says:
January 13th, 2009 at 7:33 pm
Google and uTube making millions well we will see about that we have installled google ads and utube vidio’s on our site.
and we deffinately not making millions
Im just supprise to know that just not to long ago utube was unheard of and now its all over the net.
Rob Local Valley News Says:
January 13th, 2009 at 7:36 pm
Forgot to say this is good information definatley will post it on our blogs.
DF Marketing SEO Says:
January 16th, 2009 at 10:55 am
Wow, those are incredible growth figures. I bet that a lot of people just sit at work and watch Youtube videos all day. lol