November 30, 2012 02:09:46 GMT
The music video service says that it has paid over $200 million to rights owners and now generates more money for the music industry than any other service focused on music video.
VEVO is making a lot of musicians happy. According to the music video service, it has paid over $200 million to rights owners since the site was set up in 2009. VEVO President and CEO Rio Caraeff told in an announcement on Tuesday at the Business Insider conference in New York that the amount was more than any other music-video service.
The CEO also added that the company now "generates more money for the music industry than any other service focused on music video." He explained that this is due to the fact that VEVO has a high quality standard when it comes to content compared to other video sites which publish works from unofficial sources.
"The audiences that loves music should be treated and valued the same way as the audience that loves the Super Bowl, and revenue should flow as such," Caraeff told reporters at the conference.
The amount paid by VEVO would seem very high at first. However, as explained from reports published by Billboard on their Business Matters post, most of the payments do not go directly to the artists. SoundExchange, the group that gathers digital performance royalties on behalf of sound recording owners and performing artists, distributes them accordingly.
According to the post, SoundExchange distributes net royalties with fifty percent of it going to the owner of the sound recording. Forty-five percent go to the performing artist and five percent to the backup singers and session musicians. Net royalties are royalties after SoundExchange subtracts their administration fee, which was 5.3% in 2011.