How do YT Music channels make money ?

When you search for a music on YouTube. You usually find channels that upload lyrics of the music along the music, which is a copyrighted content.
I can see in the video's description that the YT Robot detected the music the video used, so certainly the money that the video gets goes to the music studio.

So how do they make money ?

They won't be able to monetise that single video, however the organic traffic on their account rises if a video gets many views so they can still make money off other videos on the channel which are not copyrighted.

LaxmanKafle said:

YouTube Music channels can make money in a variety of ways, including:

1. Advertising revenue: YouTube Music channels can earn money through ads that play before, during, or after their videos. The income earned from these ads is split between YouTube and the channel creator.
2. Sponsorships: Some YouTube Music channels have sponsors that pay them to create content for their products or services.
3. Merchandise sales: YouTube Music channels can sell merchandise, such as t-shirts or albums, to their fans.
4. Crowdfunding: YouTube Music channels can also use platforms like Patreon to receive financial support from their fans.
5. Subscription: Some YouTube Music Channels use YouTube Music Premium to monetize their content, which means people who want to listen to the music without ads or to download the songs have to pay a monthly fee.

It is worth noting that making money on YouTube Music is not easy, and it may take a lot of time and effort to grow a large enough audience to earn significant revenue.

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We need a policy here that bans all chatGPT generated answers.

This is wrong. OP wasn't asking about a YouTube music channel, they were asking about a lyrics channel that posts lyrics along with the music.

zeranexos said:

I can see in the video's description that the YT Robot detected the music the video used, so certainly the money that the video gets goes to the music studio.

So how do they make money ?

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Several of the big lyric video Youtube channels were made when monetization policies were different. They were grandfathered into the new YPP policies anda have not been reviewed yet. So they continue to make money until they are looked into by google. Now if you make a channel and post lyric videos, your channel will get a claim and you won't be able to monetise it.

From YouTube support forum

Those channels were monetized under the past rules and haven't been reviewed under current policy. You can't use them as a yardstick for your own channel.

They are likely to be demonetized when they are reviewed against current monetization policy. Since you doubt my words, then go ahead and apply with your lyrics channel and see if you are approved.

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Also, not all studio claims take all of your monetization. Some can share ad revenue. Several of the lyrics channels also have actual licensing rights. channels like 7clouds are actual record labels.

Their might be alternate ways too like merch and affiliate links in your description but I don't think your channel will be up long enough for them to be profitable anyways. New YPP policies will likely result in takedown almost immediately or you won't be getting any money from the video.

zeranexos said:

So how do they make money ?

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Attract subscribers to channels, and then sell them.

They can do paid promotions in the video but such opportunities will come when the channel becomes popular.

as someone said earlier use your description to promote other channels, use them as a driver for new subscribers which then you can monetize directly when you launch a product / or publish promoted content

They could be using some CMS copyright claiming tool.

The real question here is how do these music channels stay monetized? I'm actively curating a music channel since 2018 and so far I was demonetized 7 times for reused content. I tried every potential solution (using animated backgrounds, removing all copyrighted videos, getting claims removed by the artists on my most viewed videos, optimising description and thumbnails, trying to present my channel as a label, even publishing some music etc) and I still get demonetized 8-10 months after monetization approval. On the other hand, I know and follow lots of channels which do the exact same thing as me, and they somehow manage to keep their monetization on all the time. Tried reaching out to them, but of course no luck there. Pople saying all of them will eventually be demonetized are not right, most of them will, but there definitely is some way of keeping these channels monetized. Also, if you know what youre doing and you know how to dig music, these channels can generate large amount of traffic so they are definitely worth investing time into developing them, I was monetized since June 8 last year until April 7 and i made around Eur 55K in this period of time. I even got paid March earnings even though I was demonetized before it was finalized on my AdSense account.

They are signed to an invite-only distributor.

They might be doing branding which they will encash later. No need to make money directly with adsense with those videos.

prestigiousc said:

They are signed to an invite-only distributor.

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What do you mean, can you elaborate more?

Even they don't make money with those videos, they get organic views thanks to them. A lot of people visit their channels and watch their other videos too. They can make money this way.

they can make money by paid promotions.

When channels on YouTube upload music videos with copyrighted content, such as lyrics along with the music, they may monetize their videos through the YouTube Partner Program (YPP). The YPP allows creators to earn revenue from advertisements displayed on their videos. However, the revenue generated from these ads is typically shared between the creator and the rights holders of the copyrighted content, such as the music studio.