Following the collapse of contract negotiations, Warner Music Group has asked YouTube to pull out all music videos of its artists from its online video-sharing platform.
The announcement comes at a time when most of the prominent music brands, including Sony Music, Universal Music Group, and EMI, are revisiting their licensing contracts with the video-sharing website.
Warner asserted that it has been ‘working actively’ with YouTube to find a mutually suitable solution that would help returning contents from its artists back on the website.
The company has clearly upheld its intentions over the time in which proper solution is reached by saying, “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”.
Two years back, before Google acquired YouTube for a whopping $1.65 billion, Warner Music Group became the first one to pen a revenue-sharing agreement with the website.
According to a web audience measurement company comScore, YouTube is widely popular among web users, with more than 100 million viewers in US alone in the month of October.
Meanwhile, another music label, Universal Music, has notified that YouTube has earned them “tens of millions” of dollars this year, registering a mammoth 80 percent rise as against its figures for last year, Rio Caraeff Universal Music’s digital chief noted.
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Warner Music will probably be the one losing the most from the stand off as the record label pulls out of Youtube. The online video website is the largest one worldwide and has become a no-brainer one stop shop when it comes to showcase new talents to a global audience. Maybe Warner Music will come back at a later stage. Warner Music Group signed a landmark video distribution and revenue partnership back in Septembe 2006. Maybe WMG got too greedy this time around.
(The New York Times)
(Wall Street Journal)
(Channel News Asia)