@Rockonomic: $0.00238 — the estimated royalty payout for a VEVO play, per stream per viewer

I found a napkin next to my coffee cup this morning and decided to estimate the value of a video stream, per viewer, for VEVO.

The maths scribbled on this napkin didn’t have to be too complicated since the company has been rather forthcoming in public regarding (a) the total amount paid in royalties to music owners and (b) the number of video views, on a global basis, during various months.

Using a collection of the inputs (a) and (b), a back-of-the-napkin estimate of the effective rate per stream paid by VEVO would be:

$0.00238 per viewer stream (pvs), with a range from $0.00222 to $0.0025 pvs.

I will leave it up to the reader to compare that pvs rate for VEVO to the various per listener stream (pls) for the range of alternative venues for music experiences (e.g., music services like Spotify, Rhapsody; YouTube; Webcasters; Broadcast Radio). For example, most reports would now place Spotify pls rates at about 2 to 3 times larger than this estimated VEVO pvs rate.

For more details, head to Rockonomic.com

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s