YouTube Is Costing Record Labels Millions Of Dollars In Album Sales

Perhaps, this is the reason why Prince doesn't like YouTube?

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Twitter/@fwong

Piracy is often cited as the main culprit for the decline in music sales.

But it turns out that YouTube has also played a part, Torrent Freak reports .

Back in 2009, Warner Music pulled all i...ng dispute.

Based on the blackout, researchers from Fairfield University and the University of Colorado determined that YouTube cost the label up to $40 million in lost album sales per year.

“We showed that the removal of content from YouTube had a causal impact on album sales by upwards of on average 10,000 units per week for top albums,” the paper from the study reads.

For each of the top 200 albums the study examined, the total lost in sales because of YouTube amounts to roughly $1 million per year.

This is more evidence that stream...ling sales. Even though digital downl... last year, a 1% decline to $2.4 billion suggests that people are moving away from purchasing music and moving toward streaming services like Spotify, Beats Music, Slacker, Rdio, and Pandora.

Now, that's not to say that YouTube serves no benefit to the music industry, given that labels still receive a lot of money through advertising on YouTube. And for smaller artists, YouTube is a great way to reach a massive audience. But for top artists, YouTube's role in promotion and discovery may not be as relevant.

Source link http://finance.yahoo.com/...55576.html

It's always something. In the early 1900s, they said the phonograph hurt sheet music sales. Then in the 1920's it was radio and jukeboxes hurt record sales, televison hurt movie ticket sales in the 1950's, and so on.

Well there are full albums/concerts on there, so yeah...partly.

MickyDolenz said:

It's always something. In the early 1900s, they said the phonograph hurt sheet music sales. Then in the 1920's it was radio and jukeboxes hurt record sales, televison hurt movie ticket sales in the 1950's, and so on.

That's why artists need to use YouTube to their benefit. The labels gotta grow up. Get with the times a little. The labels can claim copyright because they own the product, people are just sharing. Likely newer music on YouTube may cost them more dearly than older ones but so what?

Do book publishers complain libraries are cutting into their sales?

TeeeeHaaaaHoooo said:

Do book publishers complain libraries are cutting into their sales?

Lol I know right?

Also I think they're just saying that to cover up what's really going on with why they lose money: discounts, failed promotions for artists, etc. YouTube is only costing them $1 million? Oh sure that's a "big" loss. Least they admit YouTube helps artists so they should shut up.

The main problem is, to me......


A LOT OF the original disco music released back then on extended 12 inches: these versions can be so very hard to find, most are UNAVAILABLE, you have to lose a leg or an arm in a fight to find them:

You simply can't buy it anywhere,

the only way is YouTube... in MP3 format though.... better than nothing... a big shame on the record companies for not releasing the "old gold".

these are some of the Orig. Disco classics I had (still have) very hard to find on CD:



1) Hot Chocolate - Every 1's A Winner 7:17 (FULL ORIG. 1978 12 INCH / U.S. VERSION)
http://www.discogs.com/Hot-Chocolate-Every-1s-A-Winner/release/395043
2) John Paul Young - Love Is In The Air 5:16 (Full Original 1978 Album Version)
http://www.discogs.com/John-Paul-Young-Love-Is-In-The-Air/release/830971
3) Rod Stewart - Da' Ya' Think I'm Sexy 6:29 (Orig. 1978 Full Length Special Disco Mix)
http://www.discogs.com/Rod-Stewart-Da-Ya-Think-Im-Sexy-Special-Disco-Mix/release/230047
4) Leif Garrett - I Was Made For Dancin' 6:53 (Orig. 1978 12 Inch Version)
http://www.discogs.com/Leif-Garrett-I-Was-Made-For-Dancin/release/208830

Just some examples..... shame they are unavailable..

I just disco music, especially from 1977-1979.....

[Edited 4/12/14 6:42am]

^ a Big "Thank you" to Ben Liebrand in Holland for releasing the rare disco versions on the "Grand 12 Inches - series", I own all of them.

Vol 1 to 10: http://liebrand.nl/grand12/index.html

Volume 11 is on the way...

I am gonna order this......

I don't doubt this at all.

The figures they're giving on how much they've "lost" due to streaming are of course questionable, but it's about easy access to the material that matters the most here. Using P2P networks / torrents takes quite a lot of time compared to just typing the name of the album on a service like Youtube and getting to listen to it without any delay.

Well the thing is that labels squeezed music retail so now everything is gone, Best Buy is on the verge of totally letting all music go from its locations by the end of the year. Walmart's and Target are a joke, I dont even consider Best Buy a retailer of music and Walmart and Target are a bigger joke. So the real stores are gone, you have basically told this generation that "Music" is an afterthought, which it is, its your phone ringtone at best, You Tube and other sites, are a quick grab, and honestly most people now as its been said 98% is the figure, of their music on their digital device was NOT purchased. There are so many factors, techonology just destroyed things, everyhing from the stores, to the little mom and pop stores which took longer but even now places in BIG cities like NYC are even closing down as rent's go up everywhere. You will NOT reverse this, i dont care about fluke things like ADELE, that is a one off thing and the industry hung their hat on that like they discovered the Beatles, but when "things like that" happen every once in a blue moon, u realize its got nothing to do with the labels, or even the public.

Youtube is beneficial if you dont have a label or you know what you are doing OR you have a loyal base of fans, tons of aritsts i know use this and facebook etc... to their advantage, they have long left their labels and only use a label to license their music but they give it back. ASK DAVE GROHL he has been running business like this since 1995 when the FOO FIGHTERS came out, that is all him, no label he licenses his work out and keeps the rights, they make their own videos, choose singles, work their own site, pages etc...

Personnally i dont care that a label lost a million on artists like KESHA or RHIANNA you shouldnt have signed them in the first place

lastdecember said:

Personnally i dont care that a label lost a million on artists like KESHA or RHIANNA you shouldnt have signed them in the first place

AMEN!!!

Also if labels are SO concerned (which they are not the big wigs are still FAT) STOP streaming albums a week or two early on sites like iTunes and Amazon etc....where do you think these Youtube streams come from?

Back in the day it was about albums, today is about singles, you see a hit going 6x platinum in 9 months maximum, and 80% of its sales are digital, its the iTunes era, labels, get over it.

Plain and simple DIGITAL did not catch on like they thought it would, sorry to say it but accept it, albums and cassettes going to cd you brought people along, but going to digital and mp3's all the tech you see the total seperation of who still buys albums and who drops a buck on a song, Bruce Springsteen is always going to sell an album, i dont care if he's 90 years old an artist like that has a base, Barry Manilow debuted an album with no label no promo and no itunes to do the digtal thing and the record debuted in top 10, its that simple, i really dont care that singles artists are suffering, because there are ways to do it, and alot of what the label signs now are brainless artists who sign 360 deals to get anything out there. So i dont feel bad, go make your song on a laptop etc...have your one hit make your quck $ and fade into oblivion, give me musicians and artists with catalogs, cause they dont need labels or itunes or any of that anymore

Timmy84 said:

TeeeeHaaaaHoooo said:

Do book publishers complain libraries are cutting into their sales?

Lol I know right?

Also I think they're just saying that to cover up what's really going on with why they lose money: discounts, failed promotions for artists, etc. YouTube is only costing them $1 million? Oh sure that's a "big" loss. Least they admit YouTube helps artists so they should shut up.

Get out of bed with iTunes and the Internet, take the emphasis of selling singles, and find a way to force people back into stores to buy a physical album. The music industry conspired with its own killer. Back in the early/mid 2000s, record labels were sooooo terrified of piracy, and missing out on misc. petty sales from sporadic illegal downloads that they went and did something far more detrimental to themselves by teaming up with Apple, YouTube and creating VEVO. I would imagine that 2004 was a helluva lot more profitable than 2014 is. Anyway, yeah...I say stop complying with this ridiculous "digital era". Stop treating music like it's incidental entertainment that's only useful for ringtones and computer speakers. At some point I remember labels were trying to come up with a technology that would prevent a CD from being ripped; get back on that. Stop indulging peoples iPhones. It's the only way to make things right again.

[Edited 4/13/14 11:47am]

Artesian said:

Get out of bed with iTunes and the Internet, take the emphasis of selling singles, and find a way to force people back into stores to buy a physical album. The music industry conspired with its own killer. Back in the early/mid 2000s, record labels were sooooo terrified of piracy, and missing out on misc. petty sales from sporadic illegal downloads that they went and did something far more detrimental to themselves by teaming up with Apple, YouTube and creating VEVO. I would imagine that 2004 was a helluva lot more profitable than 2014 is. Anyway, yeah...I say stop complying with this ridiculous "digital era". Stop treating music like it's incidental entertainment that's only useful for ringtones and computer speakers. At some point I remember labels were trying to come up with a technology that would prevent a CD from being ripped; get back on that. Stop indulging peoples iPhones. It's the only way to make things right again.

[Edited 4/13/14 11:47am]

Yeah, I do agree that the music industry shot themselves in the foot, and there's no turning back. Another strategy to the solution is the answer.

MickyDolenz said:

It's always something. In the early 1900s, they said the phonograph hurt sheet music sales. Then in the 1920's it was radio and jukeboxes hurt record sales, televison hurt movie ticket sales in the 1950's, and so on.

---------- Keep living in a fantasy world because you do not want to pay for music. No business can survive without sales. If people can go on YOUTUBE and listen to music for free why would they buy it.

I listen to stuff on YOUTUBE and if I like it I go out and buy it because I know that group will not be around for long recording music if no one purchases it.

I hope you know that the study they conducted used stats to figure out the different in sales figures.

So I guess the math is wrong?

Timmy84 said:

TeeeeHaaaaHoooo said:

Do book publishers complain libraries are cutting into their sales?

Lol I know right?

Also I think they're just saying that to cover up what's really going on with why they lose money: discounts, failed promotions for artists, etc. YouTube is only costing them $1 million? Oh sure that's a "big" loss. Least they admit YouTube helps artists so they should shut up.

" YouTube helps artists so they should shut up" It might help some independent artist but it is not helping groups on major labels. Since YOUTUBE has been around you have not seen an uptick in sales.

I honestly think that some of you live on another planet. You simply cannot give something away and expect people to value it enough to want to pay for it.

thedance said:

The main problem is, to me......


A LOT OF the original disco music released back then on extended 12 inches: these versions can be so very hard to find, most are UNAVAILABLE, you have to lose a leg or an arm in a fight to find them:

You simply can't buy it anywhere,

the only way is YouTube... in MP3 format though.... better than nothing... a big shame on the record companies for not releasing the "old gold".

these are some of the Orig. Disco classics I had (still have) very hard to find on CD:



1) Hot Chocolate - Every 1's A Winner 7:17 (FULL ORIG. 1978 12 INCH / U.S. VERSION)
http://www.discogs.com/Hot-Chocolate-Every-1s-A-Winner/release/395043
2) John Paul Young - Love Is In The Air 5:16 (Full Original 1978 Album Version)
http://www.discogs.com/John-Paul-Young-Love-Is-In-The-Air/release/830971
3) Rod Stewart - Da' Ya' Think I'm Sexy 6:29 (Orig. 1978 Full Length Special Disco Mix)
http://www.discogs.com/Rod-Stewart-Da-Ya-Think-Im-Sexy-Special-Disco-Mix/release/230047
4) Leif Garrett - I Was Made For Dancin' 6:53 (Orig. 1978 12 Inch Version)
http://www.discogs.com/Leif-Garrett-I-Was-Made-For-Dancin/release/208830

5) Chic - Chic Cheer 4:44 (1984 Mix by Bernard Edwards) NO LIVE AUDIENCE NOICE IN THE INTRO, Excellent mix!

http://www.discogs.com/Chic-Chic-Cheer-1984-Mix-By-Bernard-Edwards/master/53200

6) Grace Jones - Do Or Die 6:15 (Tom Moulton 12 Inch Edit, THIS is rare with NO FADE OUT like on the album version released on compilations)

http://www.discogs.com/Grace-Jones-Do-Or-Die/release/573071

7) KISS - I Was Made For Lovin' You 7:54 (12 Inch Extended)

http://www.discogs.com/Kiss-I-Was-Made-For-Lovin-You/release/443561

8) Dee D. Jackson - Automatic Lover 7:19 (12 Inch Canada/ US Promo)

http://www.discogs.com/Dee-D-Jackson-Automatic-Lover/release/408171

9) Odyssey - Going Back To My Roots - Roots Suite: 9:47 Ajomora / Going Back To My Roots / Baba Awa (12 Inch / Album version) FOUND THIS ON A ODYSSEY COMPILATION...

http://www.discogs.com/Odyssey-Going-Back-To-My-Roots/release/1128321

10) France Joli - Come To Me 9:45 (Original 12 Inch version) (Strange, the Album version is 9:34?)

http://www.discogs.com/France-Joli-Come-To-Me/release/579953

11) Donna Summer - Love Is In Control (Finger On The Trigger) 7:03 (Producer Quincy Jones! 12 Inch Extended Remix)
http://www.discogs.com/Donna-Summer-Love-Is-In-Control/release/202130

12) Bette Midler - Married Men 7:58 (12 Inch) (Brilliant disco track!)

http://www.discogs.com/Bette-Midler-Married-Men-Bang-Youre-Dead/release/2846096

13) Andy Gibb - Shadow Dancing 6:07 (Special Disco Version) Bee Gees, great track!

http://www.discogs.com/Andy-Gibb-David-Shire-Shadow-Dancing-Manhattan-Skyline/master/363398

14) Barbra Streisand - The Main Event/ Fight 11:42 (Special Disco Version)

http://www.discogs.com/Barbra-Streisand-The-Main-Event-Fight/release/1305989

15) G.Q. - Disco Nights (Rock Freak) 8:50 (Original - Full Length - 12 inch Version) (Available at Soul Strut, Vol 1 - MP3, 2013?)
http://eu.7digital.com/ar...trut-vol-1

Just some examples..... shame they are unavailable..

I just disco music, especially from 1977-1979.....

[Edited 4/12/14 6:42am]

Oh. You'll LOVE this channel!

www.youtube.com/channel/UCJMDrNiBx-wOF_d3NdFu_FQ

[Edited 4/14/14 11:13am]

Beautifulstarr123 said:

“We showed that the removal of content from YouTube had a causal impact on album sales by upwards of on average 10,000 units per week for top albums,” the paper from the study reads.

I don't doubt it, especially for "top" albums, ie: here-today gone-tomorrow disposable hit pop.

kitbradley said:

lastdecember said:

Personnally i dont care that a label lost a million on artists like KESHA or RHIANNA you shouldnt have signed them in the first place

AMEN!!!

lastdecember said:

Bruce Springsteen is always going to sell an album

Great example of an artist who is still signed and releasing albums but NOT marketed to a younger audience WHO DOES NOT PAY FOR MUSIC!

I think the idea of constantly marketing bullshit music to a younger generation that basically doesn't know any better is also shooting the industry in its own foot. Younger generation may have the money to spend, but that's not what they spend it on and this generation NEVER did... so they need to look again at who spends money on this stuff.

There's a guy on YouTube who was downloading MJ's unreleased records from 2006, including "X-Scape",and now they want to delete his account. It sounds like since Sony wants to release his unreleased stuff, so it's time to milk the cow. Therefore, YouTube is cleaning house, until they get the profits off of them.

I cannot find the video, so his account must have been deleted.

thedance said:

^ a Big "Thank you" to Ben Liebrand in Holland for releasing the rare disco versions on the "Grand 12 Inches - series", I own all of them.

Vol 1 to 10: http://liebrand.nl/grand12/index.html

Volume 11 is on the way...

I am gonna order this......

I do too! Love this series!

Cinny said:

lastdecember said:

Bruce Springsteen is always going to sell an album

Great example of an artist who is still signed and releasing albums but NOT marketed to a younger audience WHO DOES NOT PAY FOR MUSIC!

I think the idea of constantly marketing bullshit music to a younger generation that basically doesn't know any better is also shooting the industry in its own foot. Younger generation may have the money to spend, but that's not what they spend it on and this generation NEVER did... so they need to look again at who spends money on this stuff.

Exactly, they will sell what they will sell, artists like this were never marketed to kids, i mean think of Bruce's HEIGHT of being on the radio and video stations, what KIDS was he being marketed too? Even artists like George Michael and Prince and Madonna whomever from that time, they were no marketed to teens, their audiences had some range, this is why you could have The Rolling Stones Aretha Franklin Debbie Gibson Hall and Oates Kool and the Gang and Lionel Richie all in the same Top 10, and anyone that says "oh that type of artist is out there now, sorry, they arent out there, and the argument that "they are somehow not on a label you have to dig for them, has been totally used up, i see the same bad artists on labels and just as many without a label.

Marrk said:

thedance said:

The main problem is, to me......


A LOT OF the original disco music released back then on extended 12 inches: these versions can be so very hard to find, most are UNAVAILABLE, you have to lose a leg or an arm in a fight to find them:

You simply can't buy it anywhere,

the only way is YouTube... in MP3 format though.... better than nothing... a big shame on the record companies for not releasing the "old gold".

these are some of the Orig. Disco classics I had (still have) very hard to find on CD:



1) Hot Chocolate - Every 1's A Winner 7:17 (FULL ORIG. 1978 12 INCH / U.S. VERSION)
http://www.discogs.com/Hot-Chocolate-Every-1s-A-Winner/release/395043
2) John Paul Young - Love Is In The Air 5:16 (Full Original 1978 Album Version)
http://www.discogs.com/John-Paul-Young-Love-Is-In-The-Air/release/830971
3) Rod Stewart - Da' Ya' Think I'm Sexy 6:29 (Orig. 1978 Full Length Special Disco Mix)
http://www.discogs.com/Rod-Stewart-Da-Ya-Think-Im-Sexy-Special-Disco-Mix/release/230047
4) Leif Garrett - I Was Made For Dancin' 6:53 (Orig. 1978 12 Inch Version)
http://www.discogs.com/Leif-Garrett-I-Was-Made-For-Dancin/release/208830

5) Chic - Chic Cheer 4:44 (1984 Mix by Bernard Edwards) NO LIVE AUDIENCE NOICE IN THE INTRO, Excellent mix!

http://www.discogs.com/Chic-Chic-Cheer-1984-Mix-By-Bernard-Edwards/master/53200

6) Grace Jones - Do Or Die 6:15 (Tom Moulton 12 Inch Edit, THIS is rare with NO FADE OUT like on the album version released on compilations)

http://www.discogs.com/Grace-Jones-Do-Or-Die/release/573071

7) KISS - I Was Made For Lovin' You 7:54 (12 Inch Extended)

http://www.discogs.com/Kiss-I-Was-Made-For-Lovin-You/release/443561

8) Dee D. Jackson - Automatic Lover 7:19 (12 Inch Canada/ US Promo)

http://www.discogs.com/Dee-D-Jackson-Automatic-Lover/release/408171

9) Odyssey - Going Back To My Roots - Roots Suite: 9:47 Ajomora / Going Back To My Roots / Baba Awa (12 Inch / Album version) FOUND THIS ON A ODYSSEY COMPILATION...

http://www.discogs.com/Odyssey-Going-Back-To-My-Roots/release/1128321

10) France Joli - Come To Me 9:45 (Original 12 Inch version) (Strange, the Album version is 9:34?)

http://www.discogs.com/France-Joli-Come-To-Me/release/579953

11) Donna Summer - Love Is In Control (Finger On The Trigger) 7:03 (Producer Quincy Jones! 12 Inch Extended Remix)
http://www.discogs.com/Donna-Summer-Love-Is-In-Control/release/202130

12) Bette Midler - Married Men 7:58 (12 Inch) (Brilliant disco track!)

http://www.discogs.com/Bette-Midler-Married-Men-Bang-Youre-Dead/release/2846096

13) Andy Gibb - Shadow Dancing 6:07 (Special Disco Version) Bee Gees, great track!

http://www.discogs.com/Andy-Gibb-David-Shire-Shadow-Dancing-Manhattan-Skyline/master/363398

14) Barbra Streisand - The Main Event/ Fight 11:42 (Special Disco Version)

http://www.discogs.com/Barbra-Streisand-The-Main-Event-Fight/release/1305989

15) G.Q. - Disco Nights (Rock Freak) 8:50 (Original - Full Length - 12 inch Version) (Available at Soul Strut, Vol 1 - MP3, 2013?)
http://eu.7digital.com/ar...trut-vol-1

Just some examples..... shame they are unavailable..

I just disco music, especially from 1977-1979.....

[Edited 4/12/14 6:42am]

Oh. You'll LOVE this channel!

www.youtube.com/channel/UCJMDrNiBx-wOF_d3NdFu_FQ

Thank you.

The DJ Discocat on YouTube is cool as well..

lastdecember said:

Cinny said:

Great example of an artist who is still signed and releasing albums but NOT marketed to a younger audience WHO DOES NOT PAY FOR MUSIC!

I think the idea of constantly marketing bullshit music to a younger generation that basically doesn't know any better is also shooting the industry in its own foot. Younger generation may have the money to spend, but that's not what they spend it on and this generation NEVER did... so they need to look again at who spends money on this stuff.

Exactly, they will sell what they will sell, artists like this were never marketed to kids, i mean think of Bruce's HEIGHT of being on the radio and video stations, what KIDS was he being marketed too? Even artists like George Michael and Prince and Madonna whomever from that time, they were no marketed to teens, their audiences had some range, this is why you could have The Rolling Stones Aretha Franklin Debbie Gibson Hall and Oates Kool and the Gang and Lionel Richie all in the same Top 10, and anyone that says "oh that type of artist is out there now, sorry, they arent out there, and the argument that "they are somehow not on a label you have to dig for them, has been totally used up, i see the same bad artists on labels and just as many without a label.

So true. It seems like nowadays if it isn't marketed to kids, it is adult contemporary.

laurarichardson said:

Keep living in a fantasy world because you do not want to pay for music.

Unless you can download vinyl records or CDs for free, I don't know what you're talking about. You do know that a new release record can cost up to $50 depending on whether it's 180 gram, 200 gram, half speed, 45 RPM LP, Mobile Fidelity, etc. But they average around $20 - $25 for a single regular record and $28 - $35 for a double. So that's double or triple a CD price. I've never downloaded anything, pay or free, because it doesn't have good sound quality and I like having a item to play with artwork and stuff. I have no use for digital files. I've never even owned a cell phone or an Ipod, and I still have 8-tracks and cassettes. Malaco has a mail order catalog and they still sell pre-recorded albums on cassette, which my mom orders from. Also many people in the past listened to the radio for free or watched TV shows like American Bandstand and Midnight Special and didn't buy the records. Some people are not into music like that, and others could not afford a stereo or records & tapes and maybe only had a cheap pocket transistor radio.

.

As far as the labels losing money, in most cases the performers weren't making much anyway. That's why a lot of them die broke, and the labels generally don't have insurance & pensions for acts like people at other kinds of jobs. There's things like the R&B Foundation to help old performers. So it's not much of difference from their standpoint. Even the ones that became rich like Michael Jackson, he still made a small percentage compared to what CBS/Sony made off of him. Michael really started making money when he bought the ATV catalog, and Paul McCartney owns Buddy Holly songs and Broadway showtunes. While The Beatles were an active group, they didn't make that much from record sales or merchandising because Brian Epstein signed bad deals, and the members didn't make anything at all in the early 1970s from group material because of various lawsuits after they broke up and the money was in escrow. They lost their publishing in the first place because of Lou Grade in the 1960s. Some acts decades ago didn't get paid in money or royalties, but in cars, furs, drugs, and other things. The average act made money from concerts, not record sales, and some got ripped off there too with shady promoters, managers, and accountants.

[Edited 4/15/14 17:08pm]