|
User-Generated Content - What is It? User-generated content (UGC), alternatively known as user-created content (UCC), is any form of content, such as images, videos, and text that has been posted by users on online platforms such as social media and wikis. It is generally online content that consumers create to disseminate information about topics of interest to them, including about events, issues, products, services, and much more.
UGC is the next music industry growth driver and the short-term opportunity is worth $6 billion
https://www.midiaresearch.com/blog/ugc-is-the-next-music-industry-growth-driver-and-the-short-term-opportunity-is-worth-6-billion
AudioSparx distributes music for use in UGC specifically on the following social media platforms currently: - Facebook
- Snapchat
- TikTok
- Twitch
Specifically, if you participate in our various optional digital distribution services including compilation albums, solo albums, or streaming, your music will be monetized via UGC as well.
Low Earnings Rate for UGC Earnings
Please note that the per-play/per-stream earnings for this type of music use is actually considerably smaller than the earnings-per-stream generated from on-demand music streaming sites like Spotify etc. However, the volume of activity and earnings are growing rapidly in general, and this is an important revenue segment that we believe will continue to grow rapidly, as explained in the article link above. To illustrate, one of our digital distribution partners generates approximately 5X as much earnings for us for UGC versus normal music-listening streaming earnings.
Also please note that for both UGC-related earnings as well as for general music listening streaming from decks like Spotify, there is not a single, standard earnings-per-stream rate. The earnings rate varies between different DSPs, different countries (due to both economic standards and currency exchange rate issues), and even for different songs within a single DSP. The result is that the earnings rate per stream reflected for one track can be widely different from other tracks. This is not something that AudioSparx has any control of whatsoever, it is a reflection of normal and expected variability that exists within the industry.
UGC Earnings Rate from TikTok
TikTok uses a pool formula to calculate the earnings for each track that is utilized in UGC. TikTok's formula takes in consideration the total number of views as well as the percentage of UGC creations (ie. videos or other media) using a particular track. So essentially if one video receives millions of impressions but the music track itself wasn't used in many UGC creations, those millions of impressions will not result in a high earnings rate. This is explained in further detail here. It is only when the music track is used in many successful UGC creations that its overall earnings begins to grow in a substantial way. That being said, even though having music appear in just one viral video on the TikTok platform does not necessarily generate much in the way of earnings, it does have a substantial promotional value for the track in that it gains a lot of "ears on" traffic which can have secondary benefits for the overall commercial value of the music track itself.
Future Expansion
Going forward it is possible that this market may substantially expand with music being monetized for UGC on many social media platforms that exist today, or which may emerge in the future, including these: Clubhouse, Instagram, LinkedIn, Patreon, Pinterest, Reddit, Substack, Twitch, Twitter, Tumblr, YouTube, and more.
---
|
