YouTube has announced a landmark payment of over $8 billion to the music industry in the 12-month period between July 2024 and July 2025. This significant figure underscores the platform’s growing financial impact on artists, songwriters, and publishers, highlighting the success of its dual revenue strategy of advertising and subscriptions.
The Twin Engine of Ads and Subscriptions
In a statement, YouTube’s Global Head of Music, Lyor Cohen, credited the milestone to the platform’s “twin engine of ads and subscriptions,” which he said is “firing on all cylinders.” This model combines revenue from the platform’s vast ad-supported viewership with its growing base of paid subscribers. YouTube reported having over 125 million Music and Premium subscribers globally, including those on trial plans. This is complemented by an immense user base, with two billion logged-in viewers watching music videos every month.
A Rapidly Growing Contribution
The $8 billion figure marks a new record for the platform and demonstrates substantial year-over-year growth. The payout has increased by $2 billion since its last report, which cited a $6 billion contribution between July 2021 and June 2022. Just a year prior, in 2021, the company had paid out $4 billion. This rapid acceleration positions YouTube as a major financial force in the music industry, though competitors like Spotify reported a larger payout of $10 billion for the 2024 calendar year. It’s important to note that these payouts are distributed among labels, publishers, and songwriters, not solely to the artists.
Relevance for the MENA Creator Economy
This global trend has significant implications for the burgeoning creator economy in the Middle East and North Africa. With YouTube available in over 100 countries and supporting 80 languages, including Arabic, MENA-based artists have a powerful platform to reach a global audience and build sustainable careers. The increasing payouts signal more robust monetization opportunities for regional musicians and content creators, validating the platform as a key revenue stream. As the digital content landscape matures in MENA, this growth reinforces the viability of creator-focused business models for founders and investors across the region.
About YouTube
YouTube is a global online video sharing and social media platform headquartered in San Bruno, California. It was launched in February 2005 by Steve Chen, Chad Hurley, and Jawed Karim. It is currently owned by Google and is the second most visited website, after Google Search. YouTube allows users to upload, view, rate, share, add to playlists, report, comment on videos, and subscribe to other users.
Source: TechCrunch
