YouTube says it paid over $6 billion to the music industry in a single year.
Nearly a third of that came from user-generated content like fan videos, livestreams, and lyric videos. That number is likely even higher today, with more than 125 million paid subscribers and record-breaking ad revenue.
In an industry that once saw video as a promotional tool, it’s now becoming a serious source of income.
This shift is changing how music royalties are earned, how licensing deals are structured, and how artists and labels approach content creation. From visual albums to viral TikTok clips, video content can generate revenue in unexpected ways.
In this evolving landscape, ensuring the rights are managed correctly is more important than ever.
The Expanding Universe of Music Video Content
There was a time when “music video” referred exclusively to a three-minute clip on MTV.
Today, music video content comes in many forms, and it's no longer just artists creating it. Some common formats include:
- Lyric videos
- Visualizers
- Vertical shorts (like Instagram Reels or YouTube Shorts)
- Livestreams (concerts, Q&As, behind-the-scenes sessions)
- Interactive experiences
- Full-length visual albums
These formats now play a key role in music discovery, engagement, and even royalty generation.
This is especially true as fan-made content becomes more central to how music is shared. User-generated content (UGC) has become one of the music industry’s most lucrative and chaotic royalty frontiers.
Platforms like TikTok and YouTube allow artists to monetize their videos and concerts through tools like tipping, ad revenue, livestream donations, and paid subscriptions. These features make video content a creative outlet and a direct income stream for many musicians.
Even fan-made lyric videos or animated covers can get millions of views—and often help turn songs into unexpected hits.
These examples show just how important video has become for getting seen.
Licensing 101 for Video-Based Music
Understanding how music royalties are tied to video content means becoming familiar with the core licensing structures behind each use.
Video content generally requires two essential licenses:
- Sync license: Allows someone to synchronize a composition with visual media.
- Master license: Grants use of the actual recorded version of the song.
These licenses are mandatory whether you’re placing a song in a Netflix series, uploading a lyric video to YouTube, or using it in a commercial.
And in many cases, both licenses must be acquired. This means two distinct rights holders are being compensated: one for the composition and one for the recording.
When a video with music is played on platforms like YouTube, it can also earn performance royalties, just like when a song is played on the radio or TV.
Performing Rights Organizations (like ASCAP, BMI, or GEMA) track those plays and ensure songwriters and publishers get paid. This is particularly important for lyric videos and UGC.
When a fan uses your song in a TikTok video, or you upload a lyric video to your own channel, it’s not just content—it’s a potential for royalties.
But how does that actually affect what gets paid, to whom, and when?
Monetizing Video in the Age of UGC and Platform Revenue
The financial opportunities tied to video content go far beyond sync fees.
Monetization through platform-specific tools has become a core part of the modern music industry playbook.
Platforms like YouTube and TikTok support monetization via:
- Ad revenue (pre-rolls, banners, mid-rolls)
- Livestream tips and donations
- Subscription perks (e.g., YouTube memberships or Twitch subs)
- Creator funds that reward viral content containing licensed music
Music videos or livestreams that include things like Super Chats, tips, or sponsorships can earn money for the creator, and may also trigger royalties if music is used.
The original creators may benefit even when fans remix or use a song in a makeup tutorial. This assumes rights are correctly assigned through the platforms’ content ID systems.
Many artists and labels are caught off guard by this.
Without proper metadata, PRO registration, and licensing, their music might generate views but not revenue.
Sync, Visibility, and Visual Albums
Visual albums and cinematic music storytelling are also on the rise.
Artists like Beyoncé and Billie Eilish have blurred the lines between music and film. They’ve created immersive visual projects that unlock new streams of sync licensing and platform payouts.
Labels are increasingly building diverse, searchable catalogs to boost sync placements in films, ads, games, and more.
With the right content and accurate metadata, songs can do more than live on streaming platforms. They can become valuable assets for licensing in film, ads, games, and other media.
This creates two ways to earn from a single piece of music:
- Sync fees: One-time payments when your music is licensed for use in a video, commercial, movie, or show.
- Ongoing royalties: Payments collected every time that video is streamed, broadcast, or reused, especially on platforms like YouTube or TV.
In this model, a visual album isn’t just content. It can become a catalog of mini-licensing opportunities waiting to be unlocked.
How Video Has Complicated Rights Management
As video formats multiply, so does the challenge of tracking and managing music rights.
Today, songs used in videos can appear on:
- Social platforms like YouTube, TikTok, and Instagram
- Fan-driven apps that feature short videos, like TikTok or YouTube Shorts
- Livestreams and concerts on platforms like Twitch or Instagram Live
- Streaming services and global platforms that follow different licensing rules depending on the country
Each platform handles rights and royalties differently.
This makes it harder for artists, labels, and publishers to keep track of where content is used and whether it generates income.
This makes rights management more challenging than ever.
Labels and artists need to:
- Embed accurate metadata in every version of their music
- Register with PROs and CMOs to ensure global royalty collection
- Track UGC usage through content ID systems and third-party fingerprinting
- Secure sync and master rights when producing video content internally
Getting it right means you don’t miss out. Every time your content is reused, rewatched, or remixed, there’s a chance to earn.
From Lyric Videos to Visual Albums
Music videos, whether made by fans, artists, or boosted by algorithms, now directly impact how royalties are earned and licenses are handled.
From TikTok trends to full visual albums, these videos aren’t just for promotion anymore. They’re part of how music makes money.
DSPs are increasingly embracing visual media, so it is vital to understand how each video format impacts royalty flows and licensing responsibilities.
For artists, that means ensuring your work is registered, tracked, and monetized.
For labels and publishers, it means building infrastructure to manage rights across this expanding video landscape.
Whether you're handling sync deals, keeping up with UGC revenue, or managing your video content, Reprtoir gives music professionals the tools to stay on top of today’s royalty challenges.
We help you take control of your rights and ensure every video helps build long-term value.
Contact us today to learn how Reprtoir can help you simplify rights management in the age of video.
