Stock Music Marketplace AudioJungle Eclipses $10 Million Annual Run Rate
A new wave of buyers boost sales for Envato's community of musicians
One reason for this rapid growth is the success of YouTube content makers. While iTunes and Amazon are well-known services for buying and discovering music, these files are restricted to personal use only. AudioJungle, however, supplies royalty-free music which can legally be used for commercial purposes, including YouTube videos.
An active community of over 8,500 musicians populate AudioJungle. In April, the site officially passed 1 million music licenses sold since 2008.
Ben Chan, Strategy and Business Development Director at Envato, says music tracks are purchased for a number of reasons. "The biggest use is probably in YouTube videos. If you click on a whole bunch of YouTube links they'll often ask, where did this music come from? And the YouTuber will refer them back to AudioJungle," he says.
Chan states that AudioJungle’s appeal to these buyers lies in its simplicity. “Buyers don’t have to worry about rights management or calculating royalties for how many times their video gets played.”
Professional Prankster Roman Attwood says he loves AudioJungle and uses it on a daily basis to find the right tracks for his YouTube videos, watched by over 4.5 million subscribers.
According to Chan, the rise of the professional YouTube video maker has significantly contributed to AudioJungle’s growth. “People are becoming professional YouTubers as their primary source of income," he says. According to The Wall Street Journal, PewDiePie, the world’s biggest YouTube star, earned a reported $4 million from advertising displayed on his YouTube channel. He is just one of thousands of YouTube content makers earning a significant income from their videos.
Last month AudioJungle released new licensing terms which have been well-received by users. “Previously our licenses were more of a ‘one size fits all.’ Our new licenses do a better job of taking into account the very different ways in which audio files are used,” says Eric Schwartz, Content Growth Specialist at Envato.
AudioJungle Top Author Tim McMorris welcomes the change to licensing. "Before even waking up this morning, I was happily surprised to see three film licenses sold within hours of the launch," he says. McMorris’s music has previously appeared on a popular Super Bowl commercial for the Samuel Adams brewing company.
Chan believes the change to licensing represents a win for buyers and sellers alike. "We're priced low enough for any user to want to add great audio to their YouTube video, podcast, or short film. $18 is not a large sum of money, so we're driving lots of volume. But for the TV commercial customer, they'll be paying $300 or more. The musicians get value from both, because they're paid at both ends of the spectrum."
Chan says he is excited by the opportunities available to musicians through AudioJungle. "There are musicians who try to make it big with personal consumption, busking, playing at a bar, etc. But our figures show there's clearly lots of money to be made from the corporate and business world who need music for presentations, TV commercials, radio commercials, and so on. It empowers musicians to earn a good living doing what they love: making great music."
AudioJungle is part of Envato Market, a massive digital marketplace specializing in royalty-free audio, video, website templates, themes, graphics, photos, and more. Since its founding in 2006, Envato Market has paid out over $200 million to its community of creative authors.
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A community of more than ten million people worldwide buy and sell creative assets on Envato Market with total community earnings exceeding $750 million. Millions of students have taken video courses and free tutorials on the Envato Tuts+ education network and Envato Studio connects people with hand picked freelancers to complete their creative projects. Envato Elements is a subscription service with millions of ready-to-use graphic templates, fonts and assets available for unlimited download.