I don’t claim to be an authority on the subject matter, I am not a hip hop producer.
However I do have a bachelors degree in Sports, Arts, and Entertainment Management and I have been reading books on the subject matter of owning record labels, artist management, and more, since I was in the third grade. Suffice to say I have a good idea at least what I am talking about.
I am writing this article A. because I am curious on the subject matter myself, B. There is not enough viable information out there.
YouTube streaming royalties:
In some of my interviews I have asked producers what there royalties are like but for the most part they have been quiet on this either because they simply don’t know, or they want to be. But there is still a way to figure out how much you could potentially be making from YouTube streaming royalties.
So we first need to figure out what the YouTube streaming royalty rates are; there’s a lot of information out there;
- Midia Research in 2015: said the rate was 0.001
- A study of one popular but anonymous musician in early 2017, showed they were receiving .00069 per stream.
- Last Month, YouTube said that it was paying $3 per 1,000 streams in the U.S., which equates to .003 per stream.
Now that’s the trick, YouTube pays the highest for U.S. views and then every other country has different rates that isn’t known by anyone besides YouTube and its advertisers. Now what I have found from my own YouTube channel, even though Hip Hop is a global thing now, the majority of people who watch beat videos are from the U.S. so as hip hop producers you got that going for you. There are literally 10’s to hundreds of thousands of creators trying to find out how to target a U.S. audience to get a better pay rate, but you as a producer already have that audience.
Ok, so now we got three different royalty/streaming rate numbers to work with .001, .003, .00069. In order to be fair we are going to add those three numbers and divide them to get an average amount of .001569 per stream.
Potential Earnings / Case studies:
CashmoneyAp: 60,615,761 views
Taz Taylor: 7,383,847 views
Remember that both of these artists have made way more money from what they have sold their beats for, this is just another revenue stream.
CashmoneyAp: 60, 615, 671 views X .00156 = $94, 560.44 cents
Tay Taylor: 7,383,847 views X .00156 = $11, 518.80
It’s not the craziest amount of money, it wont buy you a house, but it’ll pay for the down payment.