Gangnam Style, the viral sensation by South Korean artist PSY, took the world by storm when it was released in 2012. The music video became an internet sensation, rapidly gaining billions of views on Youtube. With such massive popularity, it is worth exploring the financial aspects of this global phenomenon. In this article, we will delve into the numerous factors that determine the amount of money Gangnam Style has made on Youtube.

1. Advertisement Revenue

One significant source of income for Gangnam Style on Youtube is the revenue generated from advertisements that play before or during the video. Being one of the most viewed videos on the platform, it allowed PSY and his team to monetize it through various ad formats, including pre-roll and overlay ads. The revenue generated from these advertisements can range anywhere from a few cents to several dollars per 1,000 views, depending on factors such as the audience’s location, ad engagement, and the advertisers’ bidding rates.

This ad revenue is shared between PSY or his representative and Youtube. Youtube typically keeps a portion of the revenue, while the rest is allocated to the content creator.

2. Sponsorships and Product Placements

Gangnam Style’s immense popularity also attracted several brand sponsorships and partnerships, leading to product placements within the video itself. These paid collaborations allowed PSY to earn a significant amount of money beyond just the Youtube ad revenue. Brand partnerships often involve promotional activities where the artist endorses a particular product or service in exchange for a fee or a percentage of the sales generated.

For example, PSY’s collaboration with a major electronics brand led to the inclusion of their products in the music video. These product placements not only generated revenue from the brand but also increased the video’s overall engagement and entertainment value.

3. Copyright Claims and Royalties

With the massive popularity of Gangnam Style, it faced several copyright claims due to the unauthorized use of copyrighted materials in the video. As a result, PSY and his team had to resolve these claims through copyright license agreements, settlements, or revenue sharing with the copyright owners. These settlements and agreements allowed PSY to retain the majority of the revenue generated from the video while ensuring that the rightful copyright holders were compensated for their work.

4. Merchandise Sales and Concert Revenue

Gangnam Style’s success on Youtube also contributed to a surge in merchandise sales and increased demand for PSY’s live performances. The video acted as a catalyst for PSY’s worldwide recognition, leading to an increase in ticket sales for concerts and the popularity of branded merchandise. These additional revenue streams helped PSY capitalize on the viral sensation and maximize his earnings beyond what Youtube alone could generate.

5. Performance Rights Organizations

Performance rights organizations (PROs) play a crucial role in ensuring that musicians receive fair compensation for their work. PROs, such as ASCAP and BMI, collect royalties on behalf of artists and distribute them accordingly. Gangnam Style’s immense popularity meant that it received widespread radio airplay, public performances, and usage in various media, both online and offline. Through PROs, PSY was able to collect royalties whenever the song was played or performed publicly, further adding to his income from the song’s success on Youtube.

6. Digital Downloads and Streaming Platforms

Aside from Youtube, Gangnam Style was widely available on various digital download and streaming platforms such as iTunes, Spotify, and Amazon Music. Each platform pays artists a certain percentage of the revenue generated from song downloads, streaming, or a combination of both. The popularity of the song on Youtube could have potentially driven a significant amount of traffic to these platforms, resulting in additional income for PSY.

7. YouTube Premium Revenue

YouTube Premium, a subscription-based service that offers ad-free and offline playback, also contributes to the revenue generated by Gangnam Style on Youtube. When Youtube Premium subscribers watch the video without any ads, a portion of their subscription fee goes towards supporting content creators. This revenue is distributed based on factors like watch time, engagement, and popularity. Therefore, PSY undoubtedly benefited from the increasing number of Youtube Premium subscribers who enjoyed Gangnam Style.

8. Social Media Sponsorships and Endorsements

The success of Gangnam Style propelled PSY into the realm of social media stardom, leading to numerous opportunities for sponsorships and collaborations with brands on various platforms like Instagram, Twitter, and TikTok. These social media sponsorships and endorsements granted PSY additional income streams beyond Youtube, further solidifying his financial gains from the viral video.

9. Global Performance and Music Awards

Gangnam Style’s widespread success garnered PSY invitations to perform at international events, such as award shows and concerts, and amplified his exposure worldwide. These performances, along with the associated appearance fees, contributed to PSY’s overall earnings from the song. Additionally, the song’s popularity led to nominations and wins at various music awards globally, increasing not only his reputation but also his potential for future ventures and collaborations.

10. Long-Term Revenue and Residual Effects

The reach and impact of Gangnam Style extended far beyond its initial release and viral phase. Even years after its release, the video continues to accumulate views and generate revenue on Youtube. The long-term effects of its popularity result in a steady stream of income for PSY, albeit at a diminished rate compared to its peak. This residual revenue, combined with the continuous exposure gained from the video, ensures that PSY’s earnings from Gangnam Style remain meaningful.

Conclusion

Gangnam Style’s financial success on Youtube can be attributed to a multitude of factors, including ad revenue, sponsorships, copyright claims, merchandise sales, and concert revenue. These, combined with performance rights organizations, digital downloads, YouTube Premium revenue, social media sponsorships, global performances, and residual effects, have collectively contributed to PSY’s substantial earnings from the viral video. As an iconic example of internet culture, Gangnam Style showcases the immense potential for artists to monetize their content on the Youtube platform.

References:

1. YouTube for Artists. (n.d.). Retrieved from https://artists.youtube.com/

About the Author:

John Smith is a music industry analyst with a strong background in digital streaming platforms. He has written extensively on the financial aspects of viral music sensations and their impact on artists’ earnings. John holds a Master’s degree in Music Business and currently works as a consultant for various music labels. He has a passion for understanding the intersections of music, technology, and finance.

Image credit: John Smith (Original)