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back to article 'Op! Op! Op!' Gangnam Style earns Google $8m

Google has pulled in $8m from the over one billion YouTube views of Korean rapper – or K-pop entertainer, your call – Psy's Gangnam Style (강남스타일) video. That stunning figure was revealed by Google senior VP and chief business officer Nikesh Arora during Tuesday's conference call with analysts and reporters after Google released …

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Meh

Does Psy get a cut of the proceeds or will Google pocket the lot of it?

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Facepalm

D'oh! Read the article, dude. The uploader gets $4m. Although I suspect it will be his label rather than him that gets the lion's share of that.

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So Psy can now buy a real horse?

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I think it was reported he made $2 million out of it.

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8M is nothing

It is only 0.1% of the cost of the piracy on a single iPod.

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@LarsG

"Does Psy get a cut of the proceeds or will Google pocket the lot of it?"

Dunno - I'm not Psy-chic

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Anonymous Coward

So instead of greedy record labels we know have Google.

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50% of the revenue? Sounds pretty fair to me, frankly. I'd take that deal over what the record companies are offering these days.

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Anonymous Coward

> "50% of the revenue? Sounds pretty fair to me, frankly. I'd take that deal over what the record companies are offering these days."

Remember, unlike a record label, Youtube has done no marketing or promotion, hasn't paid the artists an advance to live on while they write songs and record, hasn't fronted the recording costs, arranged for producers, engineers, mastering, licensing, artwork, and so forth. The labels are fronting the costs and taking the financial risks, hence why they take a much bigger cut of the profits - whereas Youtube take 50% for doing nothing other than hosting. The same might be said of iTunes, but they do only take 30% and also handle the payment processing and have better auditing. Youtube also pay less than other music streaming services like Spotify and Deezer - which are hardly generous themselves. In short, if you have a novelty video or a gimmick that might go viral, then Youtube may be your ticket to fame and riches; but the poster who likened it to a lottery win as opposed to a business model was spot on.

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So that's 0.4¢ in revenue per view. But how much does it cost Google to stream that four minutes of video? Bandwidth costs, server costs, storage costs, etc.?

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i wonder

how many actually watched it to the end before clicking on something else

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Happy

Re: i wonder

Me, loads of times!

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Headmaster

The "$8m" figure is probably rounded to nearest whole million so we don't have an exact figure, but based on the numbers given in the article $8,000,000 divided by 1,233,872,169 views is 0.648365381843701¢ per view.

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Re: i wonder

Me too! I'm not embarrassed to state that I rather like it. Catchy song and a bonkers but entertaining video - what's not to like?

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Re: i wonder

's funny, I seemed to watch the Korean Dance Team video version more :)

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Re: i wonder

I'm not embarrassed to state that I rather like it

I liked it the first dozen or so times I heard it. The next 20 or 30 time I was getting tired of it. The last hundred or so times I've heard it I've wanted to throw the speakers out the window.

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Pint

That proves it (IMO)

You can make money in music by giving away your product for free.

Although IMO that has been proven way before this news; the fact that a lot of people want to see Psy live is enough prove as well.

So; anyone of the anti-piracy groups care to explain to me how this is possible, while we can all simply download Psy's hit song for free right from Youtube and put it onto our mobile music players?

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Re: That proves it (IMO)

You can make money by entering the lottery but it's still not a healthy strategy for running a business. There is, as you say, quite a lot of leeway for redefining what your product is — if your product is radio licensing, touring and appearances then the recorded versions you give away for free are just viral advertisements — but it'd be disingenuous to argue a whole business model based on a tiny subset of available data points.

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Re: That proves it (IMO)

but it'd be disingenuous to argue a whole business model based on a tiny subset of available data points.

Although I agree with you on that subject this is still how the anti piracy agencies are treating us as a whole. When it comes to (digital) media like blank CDR's, tapes and such we even have to pay extra taxes in order to support the "protection of the rights of artists" (at least here in Holland).

And although radio stations broadcast music they surely don't want people to use media and actually record all of that, when you buy a CD and want to make a copy for your own usage (or to put it on your media player) then even that gets blocked sometimes.

Even though, in general, the most income is generated by live performances.

There's a very good reason why Psy is touring like crazy right now; one moment he's in the US, then back in Korea, then all of sudden somewhere in Japan or China.

And quite frankly; I don't think he would have been were it not for sharing his Gangnam Style video.

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Anonymous Coward

Re: That proves it (IMO)

the most income is generated by live performances.

That's the genesis of Eardish, a venture set up by David Kershenbaum. He's got quite a budget for it, but it hasn't made much of an impact yet. I wonder who he has for marketing because they appear to suck..

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Anonymous Coward

Re: That proves it (IMO)

"You can make money in music by giving away your product for free"

Erm, if the uploader got 50% of the take from the content, that that's hardly giving it away for free is it? It's licensing it on the basis you get a cut of any ad revenue.

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Re: That proves it (IMO)

" That proves it (IMO) You can make money in music by giving away your product for free."

Right. Provided it becomes the most popular YouTube video ever, with over 1.2 billion views. Because 1.2 billion views (or listens) is so typical of both YouTube videos and recorded music in general.

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music companies.....

....Could learn a lot here. Essentially they gave it away for free to the fans and still make 4m from one track. (And I bet a huge number of people also bought it even though they could watch for free) And they are worried about piracy. It strikes me they have taken their eye of the ball to some extent and missed this easy revenue making opportunity. Granted they won't make this of every track but if they stopped pushing out so much garbage surely they could make a good income stream from it, enough not to worry themselves about piracy.

For the record I could live without ever hearing the track ever again but my kids love it so what do I know :-)

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Childcatcher

Re: music companies.....

...if they stopped pushing out so much garbage surely they could make a good income stream from it...

I think that this is actually an argument for pushing out more rather than less, but it comes down to personal taste (or lack thereof). Either way, expect more of the same.

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Stop

I didn't learn to play the guitar.

Is there's a single company aside from google that can point to a proportion of their profits and say "that bit came from that Psy video, only cost us (insert smaller amount) in advertising"?

Money for nothing and the clicks for free.

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Coat

I guess Idiocracy ..

.. really was a documentary after all. Now I'm off to restock with Brawndo, 'cause it's got electrolytes.

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Re: I guess Idiocracy ..

>'cause it's got electrolytes.

So you're a plant? since plants crave electrolytes.

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Bat Chain Puller....

Love the Captain Beefheart reference, someone at El Reg has some culture! Who'd have thunk it!

I'll see your Old Fart and raise you an Orange Claw Hammer!

http://www.youtube.com/watch?NR=1&v=oCDXhvXye9E

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Anonymous Coward

Re: Bat Chain Puller....

Ah, and remember those wise words to live by: the dust blows forward, and the dust blows back.

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Re: Bat Chain Puller....

Ah, yes ... brings back memories. Back in my acting days I once auditioned for the Colorado Shakespeare Festival, for which we were required to perform one Shakespearean and one contemporary monologue. I did a speech from a production of Midsummer Night's Dream in which had been most likely the only 6'3" Puck in history, along with Beefheart's "The Dust Blows Forward 'n The Dust Blows Back". I didn't get the gig...

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Devil

It's all about Psy these days

PSY curve on Wolfram alpha

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Why this video works...

Americans love an easy dance craze (usually so they can do something at weddings). Gangnam Style's simple dance moves can be easily copied (see also The Electric Side, All the Single Ladies, and the Chicken Dance- otherwise known as the Birdie Song to us over here).

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Anonymous Coward

Re: Why this video works...

...or Tchip Tchip for those who remember the Belgium single (youtu.be/yV7XgY6y5N8 youtu.be/yNTrVkDC3zM).

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Anonymous Coward

Re: Why this video works...

&%ç* thanks for that, now I have to live with that in my head for the rest of the day.

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Anonymous Coward

Re: Why this video works...

"Americans love an easy dance craze (usually so they can do something at weddings). Gangnam Style's simple dance moves can be easily copied (see also The Electric Side, All the Single Ladies, and the Chicken Dance- otherwise known as the Birdie Song to us over here)."

It ain't just the 'cains that love easy dance crazes. Dads have to have something to attempt to dance to.

You know your a pleb when you enjoy this shite.

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Re: Why this video works...

YMCA - YMMV

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Angel

Now omw to make a viral video like this to rake in come cash....

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65 cents per play? Is this guy for real? I work for a company that has a large catalogue in YouTube and from the last month of sales figures available, our highest earning track on YouTube earned $3.84 with 19,997 plays = 0.000192 cents per play.

Must be the same propaganda machine that Spotify uses...?

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You're maths is off.

ZERO POINT 69 cents per play.

That's only 3500 times as much as your highest-earning track on YouTube. Which I don't see as unreasonable if what you put up isn't worldwide top-10 "hits" that start social trends, but something smaller.

But, anyway - if it was that bad, you wouldn't do it. Or you're doing deliberately knowing it's a loss-leader in order to get actual revenue elsewhere.

And, to be honest, even on the largest of sites I've run, you'll make more money from just having decent, relevant content - and Google ads - than you'll make any other way from the same content. My brother runs a Scouting site that - until he gave up Scouting just recently - pulled in enough from Google ads each year to fund the site hosting, etc. and a couple of trips for the kids (it still pays for its own hosting, but he doesn't really "work" on it as much any more). It's been running since 1997, at least, and that's always been the case. Hell, when tent suppliers and camping companies phone him up, they could never offer more for even a huge, direct advert splat on the front-page than Google were giving him for random ads anyway. The money he got wouldn't have provided a wage, but he did a damn sight better than the 0.000192 cents per click you were getting in terms of revenue per visitor.

It makes me wonder what you're doing, why you bother, and why you think Google should give you "free" money for whatever it is you're doing.

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Anonymous Coward

More proof

Sheeple can be led most anywhere.

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Anonymous Coward

Re: More proof

"More proof - Sheeple can be led most anywhere."

the AC can not be justified, ever, but I have to say well done for highlighting what most can not see.

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Jan Hargreaves said: "65 cents per play? Is this guy for real? I work for a company that has a large catalogue in YouTube and from the last month of sales figures available, our highest earning track on YouTube earned $3.84 with 19,997 plays = 0.000192 cents per play."

No. It's not 65 cents per play. It's .65 cents per play. Granted that's still 3385 times more than your figures but is there the tiniest, weeniest possibility that there's some multipliers and 'publicity' involved....?

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Whoops, you got me. 0.65 cents per play it is.

As you said, though, even then... this is way more than they actually pay. I was also wondering whether they sold the branding of his song's page for an extortionate amount. Still don't believe the final figure. It's propaganda.

Regardless... it's still misleading, to paint a picture that Google is helping artists. They are worse than the record companies.

Now... if the label/artist did receive 0.65 cents per play... that would really help the music industry. Anyone have any idea how much Google charges the advertister for each play? You know.. they only made $50 BEEELION last year.

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@ Jan Hargreaves

I imagine that once your songs' pages get to the hundreds of millions of views, you may be able to negotiate a higher fee per view from Google. You can bet that Google will charge more for adverts on the popular pages.

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Wow

A company handing over 1/2 the revenue of 'sales' to the producer of the same! No wonder the music industry is shitting itself - that's over 5* the rate it returns money to the ones it hasn't conned^H^H^H^H^H^H talked out of rights!

I bet even the Columbian cartels are considering restructuring too!

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NASA Johnson style

I prefer the NASA Johnson style video (http://www.youtube.com/watch?v=2Sar5WT76kE), slightly better than NASA and we know it (http://www.youtube.com/watch?v=QFvNhsWMU0c)

:-)

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Anonymous Coward

Every year the Plebs go crazy for generic crap.

This is it!

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Gangnam and Justin Bieber... says it all really.

Music for idiots. Proves music is predominately a business and not an art any more.

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It's called "popular music" for a reason

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Flame

Sir, I'm cancelling my subscription

Why no photo of Schmidt going Gangnam style for this story in the 'Top Stories' box?

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