Although the YouTube/Google party line on video ad revenue is vague (“There are no guarantees under the YouTube Partner agreement about how much you will be paid.”) some digging turns up speculation on potential profits. TechCrunch’s Erick Schonfeld reported today on Google and YouTube’s revenue figures. Looking at 2010’s actual numbers, the site makes about $1 per thousand page views. For videos running ads as part of the revenue sharing program, that revenue is then split between YouTube and the content creator. Content creators, or partners, take 68% of the profit. At 30,000,000 views, that lands Black and Ark Music Factory $20,000 – a 1000% return on investment. That number matches the figure reported Damian Kulash Jr., the lead singer of indie pop band OK Go, who have made a name for themselves via viral videos.
The revenue doesn’t stop there, though. Where Google has had a notoriously tough time monetizing YouTube content, Apple’s iTunes has had significantly fewer problems. Since hitting the online music store last Monday, “Friday” has amassed a staggering number of downloads, reportedly topping 2 million; the song currently sits at #45 on the iTunes Top Singles chart. According to 101 Distribution, an independent music distributor, iTunes pays out $.70 per single download in the United States. That’s a much juicier check for Black and Ark Music Factory; even if the numbers are exaggerated, the intake from “Friday” could top $1 million.
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