Despacito, the mega-hit single released by Luis Fonsi and Daddy Yankee in 2017, took the world by storm, becoming the most-watched video on YouTube in record time. With billions of views, the question that arises is: how much money did Despacito make off YouTube? In this article, we will explore the various aspects that contribute to the financial success of the song on the popular video-sharing platform.

1. Advertising Revenue
One of the main sources of income for music videos on YouTube is through advertising revenue. Despacito garnered a staggering number of views, resulting in a significant amount of ad impressions. YouTube’s algorithm places ads before, during, or after videos, and content creators receive a share of the revenue generated from these ads.
The high view count of Despacito ensured that it was a prime candidate for advertisers, leading to increased revenue for the song.
2. YouTube Premium Subscriptions
YouTube Premium, a subscription-based service, offers ad-free viewing, offline access, and access to exclusive content. Subscribers pay a monthly fee to enjoy these benefits. Each time a premium subscriber watches Despacito, the song generates income from their subscription fee.
Given Despacito’s popularity, it likely attracted a significant number of YouTube Premium subscribers, contributing to its overall earnings on the platform.
3. Digital Sales and Streaming Platforms
While YouTube is a major streaming platform, Despacito’s success extends beyond the platform itself. The song was available for purchase on various digital music stores, such as iTunes and Google Play, and was also streamed on popular services like Spotify and Apple Music.
The revenue generated from digital sales and streams on these platforms contributes to the overall earnings of the song, including its performance on YouTube.
4. Live Performances and Concerts
Despacito’s immense popularity led to demand for live performances by Luis Fonsi and Daddy Yankee. The artists capitalized on this by organizing concerts and performances worldwide.
Ticket sales, merchandise, and sponsorships associated with these live events added to the financial success of Despacito, with YouTube playing a crucial role in creating the initial buzz and reaching a global audience.
5. Music Licensing and Sync Fees
Despacito’s catchy tune and infectious rhythm attracted numerous licensing and sync opportunities. The song was featured in commercials, films, and television shows, both nationally and internationally.
Each time Despacito was used in these mediums, the artists received licensing fees, which further contributed to its financial success.
6. Brand Collaborations and Endorsements
With Despacito’s massive popularity, brands sought collaborations and endorsements with Luis Fonsi and Daddy Yankee. From promotional partnerships to brand placements in music videos, these collaborations brought in additional revenue for the artists.
The song’s success on YouTube played a crucial role in attracting such brand opportunities.
7. Royalties and Publishing Rights
As the creators of Despacito, Luis Fonsi and Daddy Yankee earn royalties and publishing rights each time the song is played on YouTube. These earnings depend on factors such as the number of views, region, and duration of playback.
The consistent global appeal and longevity of Despacito ensured a steady stream of royalties and publishing rights income.
8. International Market Reach
YouTube allows content creators to reach a vast international audience. Despacito, with its multilingual lyrics and catchy melody, resonated with audiences worldwide.
The song’s global success on YouTube led to increased revenue from various countries, expanding its financial success beyond borders.
9. Viral Nature and Memes
Despacito became a viral sensation on YouTube, entertaining and inspiring countless parodies, covers, and memes. While these user-generated content did not directly generate revenue for the artists, they contributed to the overall popularity and cultural impact of the song.
This, in turn, contributed to increased views and exposure on YouTube, leading to higher revenue from other monetization sources.
10. Longevity and Evergreen Appeal
Despacito has displayed remarkable longevity on YouTube, consistently garnering views even years after its release. The song’s evergreen appeal ensures a steady stream of income from the platform.
YouTube’s long-tail effect allows Despacito to continue generating revenue, making it one of the most financially successful songs on the platform.
Conclusion
Despacito’s financial success on YouTube can be attributed to various factors, including advertising revenue, YouTube Premium subscriptions, digital sales and streaming platforms, live performances and concerts, music licensing and sync fees, brand collaborations, royalties and publishing rights, international market reach, viral nature and memes, and its longevity and evergreen appeal.
The combination of these factors, along with the global phenomenon Despacito became, resulted in significant monetary success for Luis Fonsi and Daddy Yankee, further solidifying the impact and influence of the song in the music industry.
References:
1. Billboard: https://www.billboard.com/articles/business/8465560/youtube-despacito-profit
2. Forbes: https://www.forbes.com/sites/brittanyhodak/2019/07/10/how-entrepreneurs-can-achieve-despacito-level-success/#78d00ea51db2
3. YouTube Creator Academy: https://creatoracademy.youtube.com/page/course/revenue-basics
About the Author
John Smith is a music industry analyst with a deep understanding of digital streaming platforms. He has written extensively on the financial aspects of music releases in the digital era. His insights and expertise have been featured in industry publications and media outlets.
Image: Original artwork created by the author.