Collecting royalties from YouTube videos
YouTube generates micro-sync royalties.
Micro-sync comes from the term 'synchronization license', which is when music is 'synchronized' to a moving image, such as a TV show, or advterisement. Micro-sync refers to the same kind of use (music + moving image) on a larger, bulk scale.
This means that instead of generating a sync license every time a sync occurs on a large-scale platform like Youtube, YouTube isntead has licenses with rights holders on both the master side and composition side to allow anyone to upload content to YouTube using the music that the rights holders control, and the rights holders are able to then monetize the music that is uploaded on the platform.
Please note that videos that do not meet YouTube's new eligibility requirements (as of February 20, 2018) cannot be monetized. In order for us to place ads on and monetize a video, the video must be on a channel that has at least 1,000 subscribers and 4,000 hours of watch time over the past 12 months.