Merlin CEO: ‘Spotify payouts are ten times YouTube’s’

“YouTube proudly proclaims they have a billion viewers. Spotify just announced that they have reached 100 million users,” said Merlin CEO Charles Caldas at our NY:LON Connect conference yesterday. “When we bank that cheque every month, the cheque from YouTube is less than a tenth of the cheque that we bank from Spotify, regardless of that disparity in user numbers.” Caldas was talking in our session on the future for labels, where fellow speakers Bill Wilson and Mark Mulligan focused on the opportunities around video content. “In the war for short-form video, which seems to be the king here, we have an enemy. And the enemy that we have is kittens!” said Wilson, to point out that music is competing for attention with all kinds of other content on social and online-video platforms. Wilson called for labels to invest more in low-cost video teams. “This war is done with an iPhone, and kids with an eye who can see content for what it’s worth, who are active users of this content in their generation, and understand what fans are looking for.” Mulligan pointed out that “Younger kids on, their idea of music is a 15-second clip that they’re lip-syncing to”, and suggested that some traditional music formats may be dating rapidly. “Maybe an album needs to be shorter. Maybe it’s unrealistic to try to compete for 35-40 minutes of people’s time…”

Source: Music Ally