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For creators wishing to monetize their videos through music, collaboration with a music licensing company can significantly enhance potential earnings. By utilizing the songs of these companies in your videos, you are essentially boosting the music's overall reach, leading to increased revenue for both the music company and yourself.
The scenario works as follows:
When YouTube generates revenue from advertisements, it splits the total income into creator and music pools.
By employing a music company's song in your video, you generate additional views for that song beyond its original metrics.
The music company benefits from the extra exposure while offering you a 50% cut of the revenue generated from those additional views.