Approximately two years ago, all four major labels signed licensing agreements with YouTube. The agreement was centered on a streaming fee for each video viewed - may it be major labels videos or generated videos and it also included a share of YouTube's advertising revenue. Warner Music is now demanding that all of their videos featuring their music be removed from YouTube.
Of all the majors Universal seems to be satisfied. Rio Caraeff, executive vice president of Universal Music Group's eLabs said that Universal has obtained tens of millions of dollars from the licensing deal with YouTube. In his statement, he said that Warner is overlooking the fact that their music business is built on the backs of artists who need this connection with their fans to grow their base and further their career. He continued in saying that if fans cannot add the music of their favorite artists to their homemade videos or share it with their friends, it is not a good way to draw fans. He also went on to say that You Tube is growing rapidly. He indicated that it is up almost 80% for them year over year in the U.S. in terms of their revenue from this category.
All in all, this war that Warner is fighting with YouTube is at the expense of the artists. I wonder how many artists are having regrets in signing that contract instead of the D.I.Y. Now is the time for artists and up and coming artists to take note of what is happening and answer this question - If YouTube decide to give Warner what they want, which is more money. How much of that money their artists are going to see on their statements or in their bank accounts.
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