"The Unbundling of YouTube"

• Music Videos are the most valuable part of YouTube, accounting for a majority of views.
• 47% of time spent listening to on-demand music is on YouTube.
• 52% of all time spent listening to on-demand music is through Video Streaming.
• $0.00164 is the pay per video-stream on an artist’s YouTube channel.
• ~ $8 is YouTube’s estimated Annual Revenue Per User.

Music Video as the discovery engine combined with better monetization/community tools for creators in a vertically focused ecosystem is what we are building. This is a big opportunity:

Music is also becoming more valuable year-over-year, increasing its share of total views. As other platforms like TikTok have become more and more popular, YouTube remains the dominant video platform and continues to grow, with the number of uploads per user still increasing in 2019.

Facebook recognizes this, but, suffers from extreme feature bloat and won't be able to adapt their product significantly enough to take market share from YouTube. Their product mechanics are dancing around a lot of what could be an effective strategy, but, their lack of focus will see this being a minor part of their product and platform. Effectively, YouTube has a monopoly on music video distribution and discovery.

The Passion Economy

The rise of the passion economy is empowering independent creators to thrive. The ramifications of this on Music are substantial - In "Independent Artists: The Age of Empowerment" Midia Research and Amuse report that independent artists are the fastest growing sector in the music industry - a trend that will accelerate in dramatic fashion with the rise of the passion economy and more tools to empower creators. Music is a core pillar of the passion economy and will be early adopters on the tools + methods to lead the way.

Empowering Creators with robust tools to run their business, build community, and monetize are what we are building. This is a big opportunity.

Music Industry Growth

"Music in the Air" Report, Goldman Sachs Research.

• Goldman Sachs forecast music revenue will more than double to ~ $131 Billion by 2030.
• This is driven by Millennials and Gen Z spending more of their annual budgets on music. This willingness to spend on their favorite artists is a key part of DAFT.