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---- YouTube Pays Off Labels with $50m


MrSpeed - 1:32 pm on Oct 20, 2006 (gmt 0)


Record companies have benefited from investments in online companies before. In 1999, EMI made $40 million literally overnight by selling part of its stake in Musicmaker.com during its first trading day. That sum dwarfed the company’s earnings from American CD sales for the entire first half of that year.

At first I though 25 million was peanuts as well. But if $40 million "dwarfs" earnings from American CD sales then maybe $25 million is a fair shake?

Also the article mentions revunue sharing from ads.

Where the hell does all the money go to for a $17 CD?


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