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