Saturday, 29 October 2016 03:48

YouTube is FameBit Purchase Could Mean Big Bucks For Musicians


Earlier this month, Google announced it had purchased influencer-focused startup FameBit, which was created to connect brands and those creating video content, most of which makes its way to YouTube. Much of the talk around this deal has focused on vloggers, comedians and those that create everything from makeup tutorials to “haul” clips, but this new purchase by one of the biggest companies in the world is also great news for the millions of musicians who have helped make YouTube the success story it is.

Many musicians have collected massive followings on the largest and most important video site in the world, and some of their numbers rival even the biggest fanbases of the much talked about YouTube stars. While it wasn’t created for just one purpose,

music fuels YouTube, and the most popular uploads on the platform are oftentimes proper treatments that accompany big singles from the most famous faces in the music industry.

While musicians both large and indie are responsible for billions upon billions of views every month on YouTube, the Google-owned property and the music business have been at odds for years, and there doesn’t appear to be an easy solution to the contentious fight. Musicians have been complaining for a long time now about the payouts they receive from YouTube, which vary widely but are notoriously low. The argument is that YouTube makes an enormous chunk of its revenue from people watching music videos and the like, and without that content, the company would be in trouble. So, if YouTube needs that musical content so desperately, it should pay more.

Of course, things aren’t quite that simple, as there have been questions about YouTube’s profitability for years now, and raising payout rates would likely send the giant into financial trouble. If it can’t just offer more cash, Google is going to have to do more to appease musical creators of every size, and the purchasing of FameBit could (and should) be just the first step to making everybody on the platform a lot happier.

These days, with sales of recorded music itself dwindling rapidly every year and touring becoming increasingly exhausting for musicians at every level, brand partnerships are becoming the go-to way for many acts to earn a living. Musicians want the money that comes with working with companies, and many are willing to do almost whatever it takes to collect that paycheck. At the same time, every brand knows that music is one of the best avenues through which to connect to valued customers and potential consumers, and companies from every industry and of all sizes are increasing their budgets for music-related spending.

It has only been a short time since Google acquired FameBit, and as of now the latter claims that it “will continue to work just like it has and will remain a standalone operation for now,” according to a statement announcing the buyout, but the search engine Goliath must already have plans in mind to get the music industry in on the influencer’s fun. FameBit already has around 50,000 creators on its platform, but it seems prepared for the number to grow, which it’s sure to do in the coming years. Making it easy for musicians to sign up and operate in much the same way that popular figures have been on YouTube for a while now is crucial, and if done correctly, it could make a lot of middle-tier music makers very happy. Brand partnerships in that space are often negotiated by connected managers and record labels, and those artists that don’t have such representation have a difficult time finding, or creating, opportunities that could come with sizable payouts from brands.

Financial terms of the deal between Google and FameBit weren’t disclosed, but if it can help repair the fractured but necessary relationship between that conglomerate and the music industry, the startup likely came at a good price. Hopefully, this is just the first step of many that Google will make to offer all manner of new tools, platforms, data, and so on to musicians looking to make more money from their content, which has proven to be extremely valuable over time, especially to the outlet hosting all of it and making it viewable for the masses.

Source : forbes


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