Despacito, the hit song by Luis Fonsi and Daddy Yankee, has been a sensation on YouTube since its release in January 2017. With billions of views, the question arises, how much money does Despacito make on YouTube? In this article, we will analyze various aspects that contribute to the song’s revenue on the platform.

1. Ad Revenue

YouTube generates revenue through advertisements, and Despacito’s immense popularity ensures a significant ad revenue for the song. Advertisements are displayed before, during, or after the video, and the revenue is shared between the creators, in this case, Luis Fonsi and Daddy Yankee, and YouTube.

The exact amount earned per ad view varies based on factors such as the viewer’s location, duration of the ad, and viewer engagement. However, with billions of views, it is safe to assume that Despacito has garnered substantial ad revenue.

2. Monetization of Channel

The creators of Despacito most likely monetize their YouTube channel, allowing them to earn money from views and engagement on all their uploaded videos. This includes not only the official Despacito music video but also other content on their channel.

Monetization is enabled by joining the YouTube Partner Program and agreeing to YouTube’s monetization policies. Creators earn money based on the number of views, engagement (likes, shares, comments), and the quality of the content.

3. Merchandising

Despacito’s success has opened up various merchandising opportunities, translating into additional revenue for the creators. Merchandise such as t-shirts, hoodies, and accessories branded with the Despacito logo or lyrics can be sold through YouTube’s merchandise platform or other channels.

The popularity of Despacito ensures a loyal fan base ready to purchase merchandise, contributing to the creators’ overall earnings.

4. Streaming Revenue

In addition to YouTube, Despacito is available on various music streaming platforms such as Spotify, Apple Music, and Amazon Music. Each play on these platforms generates revenue for the creators, although the exact amount per play may vary.

The massive number of streams Despacito has received globally undoubtedly contributes significantly to the song’s revenue from these platforms.

5. Licensing for Advertisements and Television

Despacito’s popularity makes it an attractive choice for advertisers and television shows looking to license the song for their commercials or programs. This adds an additional source of income for the creators.

Licensing fees typically depend on factors such as the duration and prominence of the usage, reach of the advertisement or television show, and the terms negotiated between the parties involved.

6. YouTube Premium Subscriptions

YouTube offers a premium subscription service called YouTube Premium, which allows users to enjoy an ad-free experience and access exclusive content. Revenue from YouTube Premium subscriptions is shared with creators based on the amount of time viewers spend watching their content. Therefore, Despacito’s popularity may contribute to the creators’ earnings from YouTube Premium.

7. Collaborations and Remixes

Despacito’s global success has led to numerous collaborations and remixes with other artists. These collaborations not only enhance the song’s popularity but also contribute to the creators’ revenue. Extending the reach of the song to different music genres and languages attracts a wider audience and increases potential earnings.

8. Performance Royalties

Performance royalties are earned when Despacito is played on radio stations, in public venues, or during live performances. These royalties are collected by performance rights organizations and distributed to the creators.

As one of the most played songs in recent times, Despacito has likely earned substantial royalties from performances around the world.

9. Copyright Claims and Content ID

Copyright claims and YouTube’s Content ID system can also impact the revenue generated by Despacito. Content ID allows rights holders to monetize or block any video that uses their copyrighted content.

If Despacito is used in videos that are not authorized or for which the creators have not given permission, the revenue generated from these videos may go to the rights holders instead of Luis Fonsi and Daddy Yankee.

10. Digital Downloads

In addition to streaming, Despacito can be purchased as a digital download. Each download generates revenue for the creators, albeit at a different rate compared to streaming or YouTube views.

The popularity of the song suggests that it has been downloaded extensively, contributing to the creators’ earnings.

11. Performance in Music Charts

Despacito’s phenomenal success on YouTube may have also translated into high positions on various music charts worldwide. Higher chart positions often lead to more exposure, increased sales, and subsequent revenue for the creators.

Despacito’s chart performance can vary between different regions and may impact the overall revenue generated by the song.

12. Sponsorships and Endorsements

Despacito’s creators, being globally recognized artists, may attract sponsorships and endorsements from companies looking to associate their brands with the song’s success. These partnerships generate additional income for the creators.

Sponsorships can include collaborations with brands for commercials, product placements in music videos, or brand endorsements on the creators’ social media accounts.

13. International Performance

Despacito’s popularity extends beyond the English-speaking world, with the song becoming a global phenomenon. The creators’ revenue is not limited to English-speaking countries but also includes revenue generated from YouTube views, streams, and purchases in non-English-speaking regions.

International success boosts the creators’ earnings and solidifies Despacito’s position as a highly profitable song on YouTube.

14. Live Performances and Concerts

As renowned artists, Luis Fonsi and Daddy Yankee perform Despacito at concerts and live events worldwide. Revenue from ticket sales, merchandising at these events, and associated sponsorships contribute to their overall earnings.

The popularity of Despacito ensures a strong demand for live performances, further enriching the creators.

15. Publishing Rights

The publishing rights of Despacito allow the creators to earn income from songwriting royalties. These royalties are earned when the song is broadcast or performed publicly. The revenue generated from publishing rights adds to the creators’ overall earnings.

In conclusion, Despacito, with its tremendous global success on YouTube, generates significant revenue for its creators. Through ad revenue, monetization of the channel, merchandise, streaming, licensing, and various other avenues, Luis Fonsi and Daddy Yankee enjoy substantial financial benefits from this chart-topping hit.

References:

1. YouTube Creators Blog – “YouTube Revenue Explained”
2. Forbes – “How Much Money Do Musicians Really Make from Spotify, Apple Music, and YouTube?”

About the Author:

John Smith is a music enthusiast and freelance writer with a deep understanding of the music industry. With a passion for research and analysis, he aims to provide informative content on various aspects of the music business. The author’s original image accompanies the article.