Music Monetization - A New Way Forward? 🧐

I was thinking about monetization on YouTube and Spotify, the two biggest music destinations online, and comparing them to Beehiiv, a Newsletter management service. It might seem like an odd comparison, but it made a lot of sense because of the way they all monetize attention. The key differentiator I found was control! Here are my notes. 

What attracts creators to YouTube and Spotify is the concept of earning money from products that don't have to be sold. It's more about buy-ins than buys. The proposition is simple, and seemingly easy: get people to watch and listen - for free! As always, you'll find the devil in the details. There are monetization thresholds, systems that drag down the revenue of smaller creators, and mechanisms of control that are designed to be traps. While researching Beehiiv, I saw an escape, and I don't think even the people at Beehiiv see what it can be. 

Why YouTube Isn’t the Gold Mine You Think

If you want to monetize on YouTube, you must meet their monetization threshold. 

Monetization Math

• 500 subscribers + 3,000 watch-hours

• The average music-video watch time is 30 seconds. It would take most artists 500,000 views to qualify for monetization.

• Ad traffic doesn’t help: watch time & subs from ads are disqualified.

The Algorithm Stranglehold

YouTube's algorithm favors the new and noteworthy. The freshest content with the highest level of engagement gets the most attention. Your content competes with every creator on the platform. This includes various forms of news: Political News, Gossip, Entertainment News, Sports News, etc. All fresh content with the highest levels of engagement. A sports fan is more likely to see clips from ESPN than your new single. 

Everything is subject to the algorithm: Uploads, Shorts, and Community Tab posts. Nothing overrides it. Someone subscribed to your channel will get sports content before yours, even if they don't subscribe to any sports channels, because that's what they watch. 

No Direct Line to Fans

No email addresses - even for paid channel members. I have viewers paying for advanced access to videos on YouTube, and I do not have their email addresses. YouTube maintains complete control over people willing to pay for access to my content. Despite paying for access to the content, YouTube continues to show them content based on its algorithm, not what they're paying to see. Some paying members can feel like they're not getting their money's worth simply because YouTube chooses not to surface my videos in their feed. If you leave YouTube, you leave your subscribers behind, because there's no way to extract them.

Spotify’s Streaming Squeeze

Spotify has a monetization threshold and a feedback loop that creates a doom cycle for artists. Each track must earn at least 1,000 streams annually to qualify for monetization. Any track with fewer than 84 streams per month will cease earning royalties. 

Users of Spotify are served music based on their listening history. The algorithm prioritizes the songs they stream most often. Guess what? Spotify has control over how often its users stream a song. The tracks chosen for algorithmic playlists served up to users are controlled by Spotify. Editorial playlists are controlled by Spotify. The order of songs on a user-generated playlist when a user hits the shuffle button is controlled by Spotify. I can save your song to my library, follow your account, and never hear it again. If Spotify doesn't choose to promote it, it's dead in the water. 

All DIY artists compete with major record companies and major indie labels. We all share the same revenue pie. If DIY artists get more, they get less. The crackdown on streaming fraud isn't about protecting the royalties of all artists; it's about protecting theirs. Effectively, DIY artists are operating in a contentious space where the major players are conspiring against them. 

Spotify maintains a stronghold over audiences. Artists aren't given a way to communicate independently. The only thing artists can do with their audience on Spotify is drive them deeper into the Spotify ecosystem. 

Ever-Resetting Threshold

Each track needs 1,000 streams every 12 months. A track cannot have fewer than 84 streams per month, or it will fall out of monetization. 

All Roads Lead to Majors

• One revenue pie; majors must stay kingpins or they yank catalogs.

• “Streaming fraud” flags often target fast-growing independents.

Zero Fan Ownership

• Follower count doesn't guarantee listens.

• Algorithmic exposure is rented, not owned.

Beehiiv: The Attention Economy Hack

No algorithms, no thresholds, no competition, direct access, and complete control: that's the value proposition of a Newsletter. The challenge has always been monetization. Newsletters offered one guaranteed way to earn, and that was paid subscribers. That's a step beyond the monetization of attention. The Super Bowl earns over a billion dollars in a day, and it is not a pay-per-view event. I can't remember the last time I saw an event be advertised as Pay-Per-View, as everyone has seemingly shifted to partnerships with brands seeking to gain attention. 

Beehiiv revolutionizes the Newsletter with two features: an Ad network and an Affiliate network. The advantage of YouTube and Spotify is being able to upload and monetize. Beehiiv allows creators to post and monetize by inserting ads and affiliate links into their newsletters. The affiliate network is called Boost. Newsletters use Boost to offer to pay per subscriber earned from placements in other Newsletters. You own the means of communication and with that, the ability to say and sell whatever you want. 

No Threshold, Pure Reach

• Hit send and reach 100 % of your list.

• Opens get you paid (built-in ad network).

• Subscribers you refer get you paid (Boost affiliate network).

Higher CPMs, Fewer Hoops

• Typical $10 – $40 per 1,000 opens—3–10× Spotify money.

• Businesses happily pay for attention; you keep the margin.

Own the Relationship

• You hold the email list.

• Change platforms tomorrow? Take fans with you.

The world I imagine 

Algorithms on music platforms operate based on association. If people who listen to artist A tend to also listen to artist B, anyone who listens to artist A gets recommended music by artist B. Triggering the algorithms in an impactful way comes down to the depth of association with other artists and their level of popularity. An artist's mailing list consists of their most dedicated fans whose streaming activity would have the greatest impact. Traffic from their newsletter would be worth more than over $1,000 in Facebook ads. Artists can sell their algorithmic influence through newsletter placements. At the same time, they can tap into the influence of others by creating campaigns and offering to pay for placements. That money would flow directly into the pockets of other artists. Beehiiv's ad network and affiliate network provide an opportunity to build that type of ecosystem. Do you see what I see? Share your thoughts. Let's get a conversation going on a new way forward. 

I’ve recently become a Beehiiv user and I’ll be writing more about my journey and its possibilities. If you’re interested in testing Beehiiv, here’s a link that will give you 20% for 3 months of service - Beehiiv Discount. For discounts on other products and services, I recommend you can visit my discount page: https://payusnomind.info/bio/view.php?id=gif-1743167801-a1d9dac7