Field Dispatch
Billboard vs. YouTube | Matt Connarton Unleashed
Speaker 1: Industry news.
Speaker 2: Hopefully it's interesting to you music business worldwide reporting that
Speaker 2: Billboard just made free streams worth more on its US charts.
Speaker 2: YouTube is not happy and is pulling its data. So Billboard,
Speaker 2: of course, you know, they've got their their various charts.
Speaker 2: I used to love when I was a kid, because
Speaker 2: I was a music industry nerd, probably starting in high school.
Speaker 2: I would I remember going to the school library and
Speaker 2: I would always look for the newest Billboard magazine and
Speaker 2: I would read that. That's how much of a music
Speaker 2: industry nerd I was from a very young age. You know,
Speaker 2: obviously I played an instrument and I was into playing music,
Speaker 2: but I was also very fascinated by the music business.
Speaker 2: So I would read Billboard. I wouldn't necessarily read it
Speaker 2: cover to cover. There's some things I wouldn't necessarily pay
Speaker 2: attention to, but I always like to look at the charts.
Speaker 2: You know, you've got the Billboard Hot one hundred, and
Speaker 2: you've got you've got all these different charts in Billboard.
Speaker 2: And of course now you can access it all online
Speaker 2: if you have a subscription, which I don't because I'm
Speaker 2: not gonna spend that money. But but the way that billboards.
Speaker 2: So the way that Billboard used to back in the day,
Speaker 2: back in my day, the way that is, you know,
Speaker 2: what would go into the into calculating the chart positions
Speaker 2: would be metrics like sales, because back then singles would
Speaker 2: you know, you would have singles. You would have you
Speaker 2: had Vinyl forty five records if you go way back.
Speaker 2: But of course you also had cut singles. If you
Speaker 2: remember cus singles. I was in a band called the
Speaker 2: Jenkston We used to joke that we were going to
Speaker 2: release a single.
Speaker 1: We never did.
Speaker 2: And of course you had CD singles and so forth,
Speaker 2: so you had single sales, but you also of course
Speaker 2: had radio airplay. Radio airplay would play a big role
Speaker 2: in how Billboard would calculate the charts, and I'm sure
Speaker 2: it still does obviously. But and also MTV. I don't
Speaker 2: know if but I don't think MTV. I don't think
Speaker 2: rotation of a music video on MTV was ever a
Speaker 2: part of the data that Billboard would use. I could
Speaker 2: be mistaken about that, but I don't think that it was.
Speaker 2: I don't think they ever.
Speaker 1: Used that data.
Speaker 2: As far as the charts, I think it was all
Speaker 2: airplay and sales, not not MTV or VH one or
Speaker 2: anything like that. Again, I'm pretty sure I'm right about that.
Speaker 2: But but so today it's all different, right, because we
Speaker 2: have the Internet. So today things that go into Billboard
Speaker 2: charts are things like, uh, you know, how many people
Speaker 2: are listening to a song online?
Speaker 1: Radio airplay is still, of course a big part.
Speaker 2: Of it, but but online, what's happening online? You know,
Speaker 2: it's much more complicated now, right, It's it's because it
Speaker 2: used to be. If you're if the only data points
Speaker 2: you're using are you know, you can have a concrete
Speaker 2: number you can look at, right, how many did this
Speaker 2: track sell in terms of singles?
Speaker 1: How many did it sell in the stores?
Speaker 2: And you know radio stage when they report their playlist data,
Speaker 2: you know how many spins did this get? Okay, these
Speaker 2: are these are metrics that we can use and calculate,
Speaker 2: and you know they have whatever formulas they use, obviously
Speaker 2: one ways more than the other. But but you figure
Speaker 2: it out, right, you have hard numbers to look at,
Speaker 2: and I guess you still have hard numbers to look at.
Speaker 2: But now it's like streaming, you know, and you've got
Speaker 2: many different streaming services and it's a lot, right, So
Speaker 2: it's all much more complicated now. One of the ways
Speaker 2: that people access music to listen to his YouTube. It's
Speaker 2: the easiest way, you know. You can go on YouTube
Speaker 2: finds us about anything. You're not going to get as
Speaker 2: high a quality file as you would if you actually
Speaker 2: purchase a wave file or an MP three. A wave
Speaker 2: sounds better than an MP three, a CD sounds better
Speaker 2: than either one, and a vinyl record sounds better than
Speaker 2: all of it. But but you can go on YouTube
Speaker 2: and just listen to music, and that's what a lot
Speaker 2: of people do. That's how a lot of people discover
Speaker 2: new music is YouTube. So here's what's happening. Just give
Speaker 2: you some context for what we're talking about here. So
Speaker 2: getting back to the story, so YouTube says again this
Speaker 2: is from music business worldwide dot com. YouTube says it
Speaker 2: will soon stop providing data to Billboard for inclusion in
Speaker 2: the US charts, ending a partnership that has lasted more
Speaker 2: than a decade. The decision, announced on December seventeenth by
Speaker 2: Lee or Cohen, YouTube's global head of music, comes just
Speaker 2: one day after Billboard revealed changes to its chart methodology
Speaker 2: that will actually narrow the waiting gap between paid and
Speaker 2: ad sponsored streams, So the waiting gap, and I did
Speaker 2: refer to it, but so different metrics have different weight,
Speaker 2: so you might have However, many paid streams might have
Speaker 2: a certain weight AD supported streams which are free. You know,
Speaker 2: like if you you go to listen to a song
Speaker 2: on YouTube, but before you can actually hear the song,
Speaker 2: you've got an AD that you have to click skip on,
Speaker 2: or you have two ads, one you can't skip and
Speaker 2: then the second one you can. That's usually how it
Speaker 2: seems to go, right, So that's an AD supported stream,
Speaker 2: So that's free. So in theory, paid streams would weigh
Speaker 2: more if you're calculating where on the chart this track
Speaker 2: is gonna go, this single, you're gonna you know, because
Speaker 2: people who are actually paying for the stream or for
Speaker 2: the track, I should say, people are like if they're
Speaker 2: paying to download it, for example, then you know they
Speaker 2: might care about it a little bit more than people
Speaker 2: who are just going on YouTube and listening to it
Speaker 2: for free, so you weigh that. So so they've narrowed
Speaker 2: the gap between in terms of what each of those
Speaker 2: metrics weighs paid versus free Essentially okay, under Billboard's current
Speaker 2: formula for the Billboard two hundred. One album unit equals
Speaker 2: two hundred fifty paid subscription streams or three thousand, seven
Speaker 2: hundred and fifty AD supported streams, a one to three
Speaker 2: ratio Billboard's new methodology announced yesterday, Well, this was this
Speaker 2: one up a few days ago. Announced on December sixteenth,
Speaker 2: Titans that ratio to one to two point five, with
Speaker 2: one album unit now equally one thousand paid streams or
Speaker 2: twenty five hundred AD supported streams. The same ratio is
Speaker 2: being applied to the Hot one hundred chart. In other words,
Speaker 2: paid streams. This is the This is the important part.
Speaker 2: Paid streams will still be weighted more favorably than AD
Speaker 2: supported plays, but by a smaller margin than before.
Speaker 1: That's interesting.
Speaker 2: Yet, in a statement today Lee or Cohen said the
Speaker 2: changes do not go far enough YouTube.
Speaker 1: This is why YouTube is not happy.
Speaker 2: YouTube wants all streams to be counted equally on Billboards charts,
Speaker 2: regardless of whether they come from paid subscriptions or add
Speaker 2: supported services. Before we go any further what Cohen said,
Speaker 2: let me just say this. I would think that that
Speaker 2: would be a hell of a lot easier for Billboard.
Speaker 3: Right because if they did it that way, if they
Speaker 3: took his his suggestion, just stop giving anything more weight
Speaker 3: than anything else.
Speaker 2: You just count it. You just count it all. Just
Speaker 2: the numbers are. What the numbers are. You count it all.
Speaker 2: You add it up. There's your numbers. Because it just
Speaker 2: seems like it would be a lot easier. Now, maybe
Speaker 2: maybe I say that because as someone who's not good
Speaker 2: at math, I want math and numbers to be easy.
Speaker 2: That's my natural I have a natural impulse. I have
Speaker 2: a bias there, right, I want I always want math
Speaker 2: and numbers to be easy, because I'm not good at math.
Speaker 2: But you know, it does seem like it would be simpler, right,
Speaker 2: It'd be a lot more efficient. I mean, they still
Speaker 2: I can't imagine how many data analysts Billboard has working
Speaker 2: for them. I'm sure it's a lot. But here's what
Speaker 2: Cohen said in his statement. Though, he said quote Billboard
Speaker 2: uses an outdated formula that weights subscription supported streams higher
Speaker 2: than ads supported. This doesn't reflect how fans engage with
Speaker 2: music today and ignores the massive engagement from fans who
Speaker 2: don't have a subscription. We believe every fan matters and
Speaker 2: every play should count equally. Therefore, after January sixteen, YouTube
Speaker 2: data will no longer be delivered or factored into the
Speaker 2: US Billboard charts unquote. Now, in thinking about that, how
Speaker 2: does that affect How does that affect artists and.
Speaker 1: Labels and.
Speaker 2: Everybody who has music streaming on YouTube? Well, if you're
Speaker 2: getting a lot of streams on YouTube or at well
Speaker 2: here's here's something. What if you're an artist who does
Speaker 2: not put your music on Spotify because you're mad about
Speaker 2: how little Spotify pays out, which is a whole other subject.
Speaker 2: I'm not trying to take that side street, but I'm
Speaker 2: just it works for this example. Say you're an artist
Speaker 2: and there's a lot of them. There's both established artists
Speaker 2: who pulled their music from Spotify because they're mad, and
Speaker 2: there's independent artists. There's small artists who just don't want
Speaker 2: to put their music on Spotify, which I personally think
Speaker 2: is a mistake. I think you should still put your
Speaker 2: music on Spotify, even if you're not happy that they
Speaker 2: don't pay you anything. Because discoverability is a term that
Speaker 2: I like to use and that we use in the
Speaker 2: industry that you have to make your music discoverable in
Speaker 2: order for people to discover it. So you want to
Speaker 2: be in as many places as possible. That's my philosophy.
Speaker 2: Some people disagree. We've had guests on the show show
Speaker 2: who disagree.
Speaker 1: That's fine. But what if you're not on Spotify for.
Speaker 2: Whatever reasons, whatever your reasons are, and so YouTube is
Speaker 2: your fallback. YouTube is where people are gonna find you
Speaker 2: and you want to be charting. Now, if you're an
Speaker 2: unsigned or small independent artist, you know you might maybe
Speaker 2: it doesn't matter to you because you know that you're
Speaker 2: not going to chart, you know, unless you get like,
Speaker 2: unless you blow up, you know, unless you get really big,
Speaker 2: you're not going to even have a shot at charting
Speaker 2: in Billboard anyway. So maybe it doesn't matter to you.
Speaker 2: But if that's the long term goal, it should matter
Speaker 2: to you. So if you are not on Spotify, or
Speaker 2: if you are on Spotify, but that's not where you're
Speaker 2: catching fire. You're catching fire on YouTube. That's where you're
Speaker 2: getting the spins, the plays spins more of a radio term,
Speaker 2: but the plays, you're the streams on YouTube. You want
Speaker 2: those numbers to count, do you not? So this is
Speaker 2: this is going to upset some people. So let me actually,
Speaker 2: let me read this from Cohen's quote again, because I
Speaker 2: just want to make sure. This is the most important
Speaker 2: thing that he says here. Streaming is the primary way
Speaker 2: people experience music, making up eighty four percent of US
Speaker 2: recorded music revenue. We're simply asking that every stream has
Speaker 2: counted fairly and equally, whether it is subscription based or
Speaker 2: ad supported, because every fan matters and every play should count.
Speaker 1: Unquote.
Speaker 2: YouTube was first included in the Billboard Hot one hundred
Speaker 2: in February of twenty thirteen. I didn't know that it
Speaker 2: was that recent. I mean, we're coming up on twenty
Speaker 2: twenty six, so thirteen years ago, I guess. But still
Speaker 2: I for some reason I thought it had been even
Speaker 2: sooner than that.
Speaker 1: But it wasn't so.
Speaker 2: And that was probably a big decision on Billboard's part
Speaker 2: when they when they decided to that. So YouTube was
Speaker 2: first included in the Billboard Hot one hundred and February
Speaker 2: of twenty thirteen, and was later added to the Billboard
Speaker 2: two hundred album chart in January of twenty twenty. Cohen said, quote,
Speaker 2: after a decade long partnership and extensive discussions, Billboard are
Speaker 2: unwilling to make meaningful changes. We are committed to achieving
Speaker 2: equitable representation across the charts and hopefully can work with
Speaker 2: Billboard to return to theirs unquote.
Speaker 1: The question.
Speaker 2: This is interesting. So the question of how to wait
Speaker 2: differences different types of streams has been contested since Billboard
Speaker 2: first introduced tiered streaming values in twenty eighteen. Prior to
Speaker 2: that change, all streams, whether from paid services like Apple
Speaker 2: Music or ad supported platforms like YouTube, were counted equally.
Speaker 2: So there was a time when when Billboard was just
Speaker 2: counting them all equally and not waiting one source of
Speaker 2: stream versus the other. In a twenty seventeen interview with
Speaker 2: Music Business Worldwide, Apple's Jimmy Iavine argued that having YouTube
Speaker 2: streams count equally alongside paid for music on Billboards Hot
Speaker 2: one hundred disadvantaged artists. Iavine was unequivocal about how his
Speaker 2: view about his view that paid streams should carry more
Speaker 2: weight on industry charts. He said, quote, I'll put it
Speaker 2: this way, people who pay for subscriptions should be advantaged.
Speaker 2: The labels owe it to their customers. The most important
Speaker 2: thing for labels is to make the paid services compelling
Speaker 2: and entertaining, and don't make free services as good as
Speaker 2: the paid services. Is that not obvious? Unquote, I don't
Speaker 2: necessarily disagree with his life. I understand the argument that
Speaker 2: he's making. I think we all can. I just but again,
Speaker 2: it's it just makes it. I mean, doesn't it make
Speaker 2: it more complicated? The more complicated you make it too,
Speaker 2: aren't there more chances for there to be errors? Calculating errors,
Speaker 2: math errors? Again I'm thinking of I know I'm approaching
Speaker 2: it with a bias of someone who the bias of
Speaker 2: someone who doesn't like math. But I'm just saying, I mean,
Speaker 2: I think it's I think when you try to weight
Speaker 2: different sources, it just makes it complicated, because then how
Speaker 2: do you figure out how much you should I mean,
Speaker 2: you know, obviously Billboard is trying to figure that out now,
Speaker 2: they're changing how much they weigh certain sources of streams.
Speaker 2: When the twenty eighteen changes were implemented, paid subscription streams
Speaker 2: were weighted more heavily than AD supported streams on both charts.
Speaker 2: On the Hot one hundred, paid streams were given full
Speaker 2: point value AD supported streams two thirds and programmed streams
Speaker 2: half On the Billboard two hundred, it took three times
Speaker 2: as many AD supported streams as paid streams to equal
Speaker 2: one album unit. Recent data shows that the US recorded
Speaker 2: music industries. Overall streaming revenue performance in twenty twenty four
Speaker 2: was dragged down by payouts from on demand ad supported
Speaker 2: music services, including YouTube and Spotify's Freemium tier. Combined, these
Speaker 2: platforms saw their revenue contribution to the recorded music industry
Speaker 2: decline in the last year, down one point eight percent
Speaker 2: year over year to.
Speaker 1: One point eight three billion.
Speaker 2: Meanwhile, on demand paid subscription platforms contributed eleven point six
Speaker 2: eight five billion dollars to recorded music right soldiers, up
Speaker 2: four point six percent year over year. The disparity and
Speaker 2: revenue per stream between paid and free tiers is at
Speaker 2: the heart of the debate.
Speaker 1: As Iving said.
Speaker 2: In twenty seventeen, quote, the fact is that free quote
Speaker 2: unquote in music streaming is so technically good and ubiquitous
Speaker 2: that it's stunning the growth of that. It's stunting the
Speaker 2: growth of paid streaming. Two things have to happen. Free
Speaker 2: has to become more difficult or restricted, and the paid
Speaker 2: services have to get better unquote. Well, free is never
Speaker 2: going to become more difficult or restricted. I mean, that's
Speaker 2: not going to happen. Ever, Cohen's announcement represents a reversal
Speaker 2: from twenty nineteen, when he welcomed YouTube's inclusion in the
Speaker 2: Billboard two hundred, calling it a quote very important moment
Speaker 2: and making the chart a more accurate representation of what
Speaker 2: people are listening to unquote. At that time, Cohen said,
Speaker 2: quote genres like Latin hip hop and electronic, which consistently
Speaker 2: dominate the YouTube charts, will now be properly recognized for
Speaker 2: their popularity. This is another great step in bringing YouTube
Speaker 2: and the industry together unquote. YouTube reports in October that
Speaker 2: it paid more than eight billion to the music industry
Speaker 2: during the twelve months from July twenty four to June
Speaker 2: twenty five, covering revenue from both advertising and subscriptions on
Speaker 2: the Google owned platform. In his statement December seventeenth, Cohen
Speaker 2: directed fans to YouTube's own charts as an alternative to
Speaker 2: Billboard's lists. He said, quote, if you're curious about what
Speaker 2: music is making waves on YouTube, you can visit our charts.
Speaker 1: Unquote. Well that's a good point, I guess. So there
Speaker 1: you have it.
Speaker 2: The other thing happening very very quickly with YouTube, and
Speaker 2: this is from Digitalmusicnews dot com. YouTube is reportedly terminating
Speaker 2: channels behind fake AI film trailers our AI music page takedowns. Next,
Speaker 2: this is short, but let's do this quickly before we
Speaker 2: go to break. YouTube has reportedly started terminating some of
Speaker 2: the channels be behind unauthorized artificial intelligence film trailers. Is
Speaker 2: a crackdown on AI music accounts coming, though it'll be
Speaker 2: up to the new year to deliver an answer, we
Speaker 2: can be sure of two related points at present. First,
Speaker 2: the video sharing giant has booted screen Culture and k
Speaker 2: H Studio, a pair of prominent fake trailer specialists, according
Speaker 2: to deadline from the platform all together, so both those
Speaker 2: channels have been booted per the same outlet. The terminations
Speaker 2: followed considerable pushback against the channels, and, while it probably
Speaker 2: doesn't need saying, said pushback was set in motion by
Speaker 2: the involved uploads reach and adjacent ability to confuse fans
Speaker 2: or at a minimum, distract from proper trailers. So, in
Speaker 2: other words, these channels were making their own custom trailers
Speaker 2: for movies. Screen Culture allegedly pumped out twenty three fake
Speaker 2: trailers for the Fantastic four First Steps, with a few
Speaker 2: outranking the actual trailer itself, boasting around seventeen million views
Speaker 2: in search results. Long story short, YouTube had reportedly slapped
Speaker 2: screen Culture and kh Studio with a monetization time out
Speaker 2: which ended when they started adding disclaimers like fan trailer
Speaker 2: and parody to their upload titles. But the channels, having
Speaker 2: reportedly generated a combined one billion or so of views,
Speaker 2: are said to have reverted to their old ways, an
Speaker 2: alleged move that then drove the takedowns. Second, we can
Speaker 2: also state with confidence that there's a massive amount of
Speaker 2: AI audio inundating DSPs and in the process stealing fans,
Speaker 2: playlist spots and royalties from real artists. Then we talk
Speaker 2: about that on the show all the time. The impact
Speaker 2: that AI is having, as most are aware, allegedly infringing
Speaker 2: machine made tracks as well as tracks that make too
Speaker 2: big a commercial splash typically face takedowns and or threats
Speaker 2: of legal action.
Speaker 1: In general.
Speaker 2: However, it's a different story for the advance avalanche of
Speaker 2: AI songs with comparatively modest stream and view counts. As
Speaker 2: demonstrated by hard data and Curse Rey DSB searches alike.
Speaker 2: These creations, while not yet outshining genuine music, are subtily
Speaker 2: expanding their presence on platforms such as YouTube and Spotify.
Speaker 1: Well, the thing is.
Speaker 2: As long as your as long as your channel doesn't
Speaker 2: get huge, you stay under the wire.
Speaker 1: If you under the radar would be a better way
Speaker 1: of putting it right.
Speaker 2: So, if your channel gets too big, you might get,
Speaker 2: for example, you might get copyright claims or I'm sorry,
Speaker 2: copyright strikes. Copyright claims are one thing, copyright strikes or another.
Speaker 2: You don't want copyright strikes. You can get copyright claims.
Speaker 2: I get copyright claims all the time. I put you know,
Speaker 2: this radio show streams on YouTube, and obviously we're playing
Speaker 2: copyrighted music. I can never monetize this, that's fine. I
Speaker 2: can never monetize the show on YouTube, that's fine. Couldn't
Speaker 2: do that anyway. It contains advertising. I don't care about that.
Speaker 2: I'm just streaming it to YouTube as it just gives
Speaker 2: people another way to enjoy the show. They don't they
Speaker 2: don't block my videos, they just won't ever let me
Speaker 2: monetize them.
Speaker 1: And again I'm fine with that.
Speaker 2: But if if I got big enough where you know,
Speaker 2: a label, I mean, I'm I'm a small time. But
Speaker 2: if I were like this huge, I mean, if I
Speaker 2: were big enough, I wouldn't I would just not stream
Speaker 2: the show on YouTube anymore because I would know because
Speaker 2: I would see what was coming. Right, if I were
Speaker 2: big enough that I got the attention of the labels,
Speaker 2: they you know, somebody might issue an actual copyright strike,
Speaker 2: and a copyright strike would put my channel in danger.
Speaker 2: So I wouldn't do that. You know, I'm at a
Speaker 2: level where I you know, I do it. It's fine,
Speaker 2: I get copyright claims, but that just means you can
Speaker 2: never monetize this video. Fine, I can't monetize any of them.
Speaker 2: It's fine.
Speaker 1: But but if you get.
Speaker 2: Big enough, YouTube notices or someone notices who will then
Speaker 2: complain to YouTube effectively, and then YouTube will begin to
Speaker 2: penalize you. You know, the first might be just demonetizing you.
Speaker 2: If you have a big channel. That's if you're monetized
Speaker 2: and you're making money, you know, you don't want to
Speaker 2: lose that. That's the first thing YouTube might do to
Speaker 2: you is demonetize your channel. Instead of just demonetizing specific videos,
Speaker 2: they might demonetize your entire channel, and then you've just
Speaker 2: lost a source of income. And then the next step
Speaker 2: might be they're going to take you down. There's a
Speaker 2: lot more to this. The article itself is short, but
Speaker 2: we're we're getting to that point. Where we got to
Speaker 2: hit a commercial break
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