YouTube’s $1-billion payout to musicians is a joke – IFPI

The IFPI, which represents the interests of 1,300 record companies, has issued a rebuttal to YouTube’s statement about ad revenues for musicians during 2016.

YouTube recently announced it paid over $1 billion in advertising revenue to artists, labels, and publishers in the music industry over the past year.

The figure did not impress the IFPI.

“Google has today issued more unexplained numbers on what it claims YouTube pays the music industry. The announcement gives little reason to celebrate, however,” said the IFPI.

“With 800 million music users worldwide, YouTube is generating revenues of just over $1 per user for the year. This pales in comparison to the revenue generated by other services, ranging from Apple to Deezer to Spotify.”

The IFPI noted that in 2015, Spotify paid record labels around $2 billion – an estimated $18 per user.

“YouTube, the world’s largest on-demand music service, is not paying artists and producers anything like a fair rate for music.”

“This highlights more than ever the need for legislative action to address the value gap that is denying music rights holders a fair return.”

Now read: Most-watched videos on YouTube in 2016

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YouTube’s $1-billion payout to musicians is a joke – IFPI