Uploads by ‘fans’ generate half of the music industry’s revenue on YouTube

Half of the music industry’s revenue from YouTube is generated by users who upload copyrighted material. Rightholders can choose to allow that, but add ads so they can earn money.

According to YouTube, the Content ID program, which identifies copyrighted audio and video content, has raised more than $2 billion for copyright owners since its introduction in 2010.

More than eight thousand parties who own copyrights use Content ID. Once their material is uploaded by users, those parties can choose to block it, mute the sound, or allow it to display ads. The income from those advertisements does not go to the uploader, but to Google and the rights holders.

YouTube says 90 percent of participants choose to monetize the illegally uploaded material. In the music industry that would be 95 percent. According to the “How Google Fights Piracy” report, Content ID has invested $60 million and its database contains more than 50 million reference files.

So far, YouTube claims to have paid more than $3 billion in total to the music industry. Right now, “about 50 percent” of the industry’s revenue is generated on YouTube through the Content ID system.

While YouTube touts its Content ID system as an effective anti-piracy tool, artists and rights holders are unhappy with the fees they receive from YouTube and similar services. They also criticize the limitation of liability for infringements enjoyed by online platforms. More than a thousand artists have asked the European Commission to allow a ‘fairer’ compensation from YouTube. They argue that the revenue is disproportionate to the uploads. The British music industry has calculated that the turnover from streaming services is lower than that from the sale of LPs.