Stereo Mix does not play sound (Trying to play music through Skype)

I am trying to play system sound through Skype calls so that the other end can hear. I have tried using a Virtual Audio Cable for this but the quality is really bad, just sounds like I'm blasting a speaker into the mic. I've looked through online tutorials and most of them have a simple solution; Stereo Mix. I've enabled Stereo Mix, made it default device, enabled it through my mic in Skype audio settings. The only problem is, when I play a Youtube video, the sound doesn't go through. This is my sound control panel when playing music:



As you can see the visualizer on the right side is completely silent, and it's not going through at all. I've tried numerous combinations (mic is default communication device, mic is disabled, stereo mix is default device, etc) and they all don't work. I've searched elsewhere for solutions and they are all faulty. I feel like I'm missing something huge here. Hope one of you can help me. Thanks

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