I was recently honored to speak with an elite group of L.A.'s best business managers about how YouTube drives a recording artist's recoupment of video accounts and earnings.
According to a recent Viacom study, 91% of 13-40 year olds "listen to
the song/watch the video on YouTube prior to purchasing."
Yet, YouTube cannibalizes record sales and it and Vevo - through which UMG and SONY take an extra cut - pay controversially low royalty rates.
Thus, whether independent or major, your clients are best served by a very thoughtful YouTube business strategy.
Here are four points I consider when helping business managers develop a YouTube financial plan for music clients:
- Cost - Fund production costs with brand integration, engage in budgeting, document approvals, make sure clients aren't subsidizing production
- Collections - Consider re-records. Also, metadata tells licensees who to pay, so you want to get it right (see this Metadata style guide for tips).
- Control - Don't let Vevo ads erode brand equity.
- Compliance - For crowdfunded videos, we provide tax planning and verification of accredited investors for a 506 offering.
- Claims - Potential audit findings include incorrect recoupment and/or cross-collateralization, incorrect costs, so-called "digital breakage," Vevo fees, publishing synch fees
Are you a business manager, attorney, personal manager or advisor?
Call me today at 424.248.8866 to influence these and other key factors of your clients' financial success.
Call me today at 424.248.8866 to influence these and other key factors of your clients' financial success.
