It has been reported that YouTube has 1.9 billion consumers. YouTube’s Head of Music, Lyor Cohen, declares that the advertising profits are increasing, although subscription revenues are average with the other streaming giants.
Compared to other streaming services, YouTube reimburses a small portion on per-stream royalties. This is a part of the company’s ‘value gap,’ which refers to the huge discount that they pay for content. Also, the ‘value gap’ involves with the UGC-friendly copyright laws: rather than directly licensing music, YouTube permits users to upload any content, while moving the burden of material claiming and administration to rights holders.
“I do know, from every single senior executive, that’s we’re not discussing the value gap. We’re discussing how to maximize our funnel and how to grow the business, how to be better partners with them. It’s nice.” – Lyor Cohen
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