Photo Credit: BoliviaInteligente
YouTube says it’s pulling its data from Billboard in response to a recent change made to its ranking formula, which YouTube believes does not reflect how fans engage with music.
Today, YouTube has announced its decision to pull its data from Billboard’s U.S. music charts in a post by Global Head of Music Lyor Cohen. The move is a response to a recent change Billboard made to its ranking formula, which adds more weight to paid, on-demand streaming as opposed to ad-supported, free streaming. YouTube thinks there shouldn’t be any differentiation between the two, as it “doesn’t reflect how fans engage with music today.”
According to Billboard, its decision to adjust its formula will “better reflect an increase in streaming revenue and changing consumer behaviors.” That’s because, as Billboard attests, streaming carries more weight than buying albums or songs, so its charts should reflect that.
But YouTube thinks there should be little to no differentiation between free and paid streams—especially if those changes were made to reflect how consumers today are enjoying music.
“Billboard uses an outdated formula that weights subscription-supported streams higher than ad-supported. This doesn’t reflect how fans engage with music today and ignores the massive engagement from fans who don’t have a subscription,” YouTube’s blog post explains. “Streaming is the primary way people experience music, making up 84% of U.S. recorded music revenue.”
The ranking changes will be reflected starting with the charts published on January 17. To protest those changes, YouTube said it will no longer provide data to Billboard after January 16. The changes will impact the Billboard 200 lists and genre-based album charts, and the ratio between paid/subscription and ad-supported on-demand streaming tiers will be adjusted to 2.5:1 for the Billboard Hot 100, said Billboard.
“We are committed to achieving equitable representation across the charts and hopefully can work with Billboard to return to theirs,” concludes YouTube’s announcement.
One immediate problem is that by not playing ball with Billboard, YouTube’s music data won’t be considered in chart rankings—which could mean labels and artists will no longer prioritize YouTube when releasing new music. That’s why, as TechCrunch points out, Cohen’s demands might simply be a negotiation tactic.
