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Warner Music Pulled from YouTube After Talks Fail
Ars Technica reports: After becoming the first major music label to officially join YouTube's content party in 2006, Warner Music Group is now the first to leave. Revenue sharing renegotiations between the two respective giants broke down this weekend, and Warner has opted to remove all of its content--including user-created videos that feature its music--from Google's video showcase.
The key ingredient of Warner's content licensing disagreement with YouTube won't surprise anyone: money. Two years ago, Warner surprised the industry by being the first major label to sign a revenue-sharing deal with YouTube that green-lighted user videos that had otherwise illegally put its music in their soundtrack. Keep in mind, this was a month before Google bought the video sharing startup for a whopping $1.65 billion in October that same year, which made Warner's decision to come to terms with what was then an upstart look pretty bold.
Part of Warner's original deal (the other majors also cut similar deals of their own later) gave it a slice of YouTube's advertising revenue pie, as well as a per-play fee that is reportedly a fraction of a penny. Because of YouTube's explosive growth and eventual market domination, Warner was banking on those fractions adding up eventually.
That apparently hasn't panned out. Warner's contract is up for renegotiation now, and it seems to have fallen short of the "tens of millions" that other labels, like Universal Music, are touting as coming from their YouTube deals. There is no word on exactly what terms Warner is looking for or how much more money it wants, but talks between the companies have stalled. In an official statement, Warner says that it "simply cannot accept terms that fail to appropriately and fairly compensate recording artists, songwriters, labels and publishers for the value they provide." Ars has learned that Warner is still hoping for a resolution with YouTube, but the takedown of its content began at midnight Saturday morning.
YouTube warned its users about the takedown with an official blog post that discussed the ups and downs of music licensing for YouTube. Arguably understating the situation as "complicated," YouTube apologized for not being able to "maintain these innovative agreements," then directed users to audio-license clearinghouses like AudioSwap, where they can find pre-sanctioned music that should keep the takedown notices at bay.
Ars has also learned that no other labels have reached new agreements with YouTube, but they haven't gone as far as Warner has in terms of pulling their content or snuffing user-generated videos, either. Besides providing an unpleasant surprise to YouTube users, Warner's spat serves as another reminder that digital content licensing is still in its infancy, and growing pains are inevitable.
Also on Ars Technica:
- First Internet-created feature film debuts next month
- Australian 'Net filter testing set, will include P2P
- Don't like speed cameras? Use them to punk your enemies
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