My Kind of Country

Country music from a fan's point of view since 2008

Daily Archives: January 1, 2009

A YouTube Revolution?

youtube_logo1The recent split between Warner Music Group and Youtube could mean more to the recording industry than was first thought.  Last week, all videos with material licensed by Warner began getting removed from youtube, a casualty of break down in contract negotiations between the music company and the video site. 

Warner was the first of the major labels to strike a deal with the site.  In the original deal, Warner, Sony BMG, and Universal all received small stakes in youtube as part of music video licensing deals.  Under the terms of their contract, the label stands to collect either a pay-per play fee (which is a fraction of a penny) or a split of advertising revenue, whichever is more.  As youtube wrote on their blog after the failed negotiations, it is:  “a system that gives artists a brand new revenue source and a great way to connect with their fans.”  So does that mean having a video with millions of views could be as lucrative as a radio hit?  Probably not, but apparently there’s enough money at stake here for one the 3 majors to pull out.

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