Vevo Claims to Pay Highest Royalty Rate of Any Music Video Service
By Karla Robinson
December 4, 2012
December 4, 2012
- Vevo has reportedly paid the highest royalty rate of any music video service, giving back $200 million in revenue to the music industry since being founded in 2009, explains The Hollywood Reporter.
- According to Vevo president and CEO Rio Caraeff, “Vevo would pay more royalty revenues in 2012 than its first two years as a company combined — or $100 million, as he told Billboard earlier this year, with over $150 million in revenue in its second year in business,” THR reports.
- “As artists and industry execs alike continue to criticize services like Spotify and Pandora for their royalty payments, the sums given back to artists on the short end of the very long tail of the Vevo spectrum appear to be significant at first,” the article continues.
- Internet radio service Pandora reported that it would pay $10,000 to more than 2,000 artists in the coming year; 800 artists are expected to earn $50,000 or more.
- These payments, however, don’t go directly to artists but are distributed by SoundExchange among sound recording owners and performing musicians.
- “ So an artist like Drake, whom Pandora claimed would receive performance royalties of nearly $3 million a year, would only actually receive $1,278,450 as the performing artist, since SoundExchange distributes 45 percent of net royalties to the performing artist of the sound recording,” explains the article. “The label would get $1,562,550, as the owner of the recordings, and other musicians would receive $142,050, or 5 percent.”
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