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Monday, December 22, 2008 | 5:59pm
Warner Music/ YouTube Negotiations Sour: Label Pulls All Music Videos
WMG has orders all music videos off the video sharing site after YouTube doesn’t agree to their demands
Back in 2006 Warner Music Group (WMG) and YouTube signed a licensing agreement that enabled the video sharing giant to post music videos from the label’s artist. The agreement paved the way for other music publishers like Sony, EMI and Universal, changing the way we consume music all while virtually destroying MTV and BET’s main content source in music video programming.
However it appears that this pioneering relationship has come to a startling end as Warner Music Group (WMG) has reportedly ordered YouTube.com to remove all videos from its artists on their site, following a major breakdown in renegotiation talks. WMG is home to major hip hop such as Diddy, Lupe Fiasco, and T.I.
These agreements are often structured to net Music publishers profits on a pay-per-play basis or a revenue share on advertising the videos produce. It is unclear were the breakdown has occurred however according to the L.A. Times, WMG was trying to negotiate a higher rate per play on videos posted on the video sharing website.
In a statement Monday Warner said:
“We are working actively to find a resolution with YouTube that would enable the return of our artists’ content to the site,” a statement from WMG read. “Until then, we simply cannot accept terms that fail to appropriately and fairly compensate recording artists, songwriters, labels and publishers for the value they provide.”
On the other hand in a statement released via their official blog, YouTube explained said:
“Every day we work with the music community to license your favorite music for you to use on YouTube. But music licensing is very complicated,” YouTube said via a statement on their official blog. “Sometimes, if we can’t reach acceptable business terms, we must part ways with successful partners. For example, you may notice videos that contain music owned by Warner Music Group being blocked from the site.”
Although Warner’s Video channel is currently still available on YouTube this news is not promising for the music industry and fans who enjoy watching music videos online.
I recently interned with Fanfound.com and it is true that music licensing is one tricky area.
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This will definitely cause a huge shift in how media is consumed. I think that Warner better do something quickly before NOBODY watches their videos. But YouTube can still profit from live performances of an artist’s songs.
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Just when you thought marketing was becoming a tough discipline, things like this happen. This is why I’m switching to journalism.
Happy Holidays all. Yo Zack whose bragging about internships now? lol. Seriously though this is painful. The music industry takes a half a step forward then takes 10 steps back. They’re already behind the eightball trying to figure out how to profit from music but instead of trying to catch up they’re nickel and diming on negotiations with YouTube.
Don’t get smart with me Juan! I’m gon’ take off my belt!
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But seriously, I feel that music videos on demand has helped the industry more than hurt it. WHAT ABOUT THE FANS, HUH? DO WE MATTER?!!!
clearly fans never matter. Its all about making money. But its which philosophy they perscribe to…long term cash or short term gain. The greedy are usually impatient.
Great article Juan. I believe in the long run that MTV and BET will shut down completely by Youtube and sites like it. Obviously, Warner Music Group knows that Youtube is earning huge profits, so, they’d figure they’d raise the pay per click scheme to capitolize as well. The internet is amazing!
I encourage all indie labels to stop sending demos and start releasing albums on their own. Its only a matter of time ’til the majors throw in the flags and Youtube and the music community will be free of hassles, etc.
Richard John CEO
Rymatica Recordings
http://www.RichardJohnCEO.com