December 20, 2008 8:52 AM PST
Talks break down; Warner Music pulls videos from YouTube
Posted by Greg Sandoval 6 comments

Negotiations between Warner Music Group and YouTube over renewing the licensing agreement for the record label's music videos broke down Friday. Early Saturday, Warner, the third largest record label, removed videos from the Google-owned video site.

The impasse comes at a time when all four major labels, including Universal Music Group, Sony Music, and EMI, are renegotiating their licensing deals with YouTube.

"We are working actively to find a resolution with YouTube that would enable the return of our artists' content to the site," Warner said in a statement. "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."

YouTube has become an important revenue stream for at least one of the top labels. This week, Rio Caraeff, Universal Music's digital chief, told CNET News that YouTube has generated "tens of millions" of dollars for the recording company this year, up 80 percent from last year.

Caraeff said that Universal and YouTube enjoy a strong relationship and that the companies are trying to expand their relationship beyond music videos. A source close to Universal said that the label will likely book nearly $100 million in video-streaming revenue--most of it from YouTube.
The blog All Things Digital reported this week that while the labels are starting to make money from the deal with YouTube, the video site is not. YouTube has to pay the labels each time someone views a clip, regardless of whether it's generating any revenue, according to the blog.

By pulling out of the deal with YouTube, Warner loses access to the Web's No. 1 video site, which topped 100 million visitors in October. The site has increasingly become one of the Internet's favorite ad-supported jukeboxes. Of the top 10 YouTube channels, 7 are music related. Warner Bros. Records is the 11th largest channel.
"If we can't reach acceptable business terms, we must part ways with successful partners," Google said Friday on its blog. "For example, you may notice videos that contain music owned by Warner Music Group being blocked from the site.

But YouTube's growing prominence in music could change if the site were void of music.

Some of Warner's most popular artists, who will no longer be available on YouTube, include Led Zeppelin, Madonna, TI, Eric Clapton, REM, Red Hot Chili Peppers, and the Grateful Dead.


[Edited 12/20/08 14:29pm]

zucris said:

----
renewing the licensing agreement

I hope all of the bitchers and complainers can now see that licensing is needed to play vids on YOUTUBE and stop screaming that P is the only one who wants material pulled.

Not viewable outside the U.S.
[Edited 12/20/08 15:44pm]
[Edited 12/21/08 6:29am]

laurarichardson said:

As soon as the fawners & the asslickers see that as much as Prince complains about the major labels & their lack of vision, he has that completely in common with them.

I don't know what 2 say. I really don't understand it anymore...I just want artist's and producers to be compensated fairly for their involvement in keeping music around.

Flowers2 said:

exactly

Oh well, I save them on my computer anyway as soon as I see them!

viewaskew said:

-----
Yes, he does have something in common with the major labels it is called running a business and wanting to be paid for the use of your property.

You cannot be this slow. I do not think anyone really believes that any artist does not care about being compensated for his work.

AOL still has a grip!

Klick

klick2me said:

That's because AOL and Time/Warner are one and the same.

laurarichardson said:

You know that won't happen too many folks want to act he's the only one that has issues with YouTube. As a matter of fact -- let's see here.... huh, three hundred plus views of this article and only 11 replies. Interesting.

yeah ok Ill believe it when I see it.

Ifsixwuz9 said:

-----
Your right we only have 11 replies because so many people on this board were wrong about this issue and refuse to face reality.

laurarichardson said:

So true...all the crybabies have stopped

Tame said:

They're referred to as "Promotional Videos" - why do you think that is ?

just go to mtvmusic and watch them there


http://www.mtvmusic.com/s...erm=prince

I know it's crazy, music videos on mtv!

ElCapitan said:

Not crazy if you grew up in the 80's (videos was on more then reality shows)

LondonStyle said:

Ain't nothing being pulled for real.

Warner has money to make. Put a little pressure here and a lawsuit there, all so they can "compensate their artists" for video play. Yeah, as if.

Tremolina said:

-----
Ain't nothing being pulled for real.

WB has already pulled them. Please put down the crack. Someone has already posted another artictle showing that 80% of the music sold this year did not make a profit.

The universal comment is just hype and I feel sorry for their artist because they are not going to see one penny of money as long as Universal allows the music videos to be shown on Youtube for free.

laurarichardson said:

"Just hype"? Based on what? Why would Universal hype a profit when they are not making one?

Warner may have taken their video's down FOR THE MOMENT but why would they really want ot pull them off when all they want to do is make money?

Did you even read that all companies are RENEWING their licenses? That means Youtube didn't do anything illegal by posting them and the companies are now only putting pressure on them to return MORE revenue by taking down their videos.

And PLEASE... only peanuts of those profits go the "artists". Most "artists" don't even have a thing to say on video's and have sold all their rights.

So sounds to me like you are smoking the crack here.
[Edited 12/25/08 17:07pm]

Oh and here is another quote from Universal (prince's publishing pimp remember?)




And here you are telling me that the "artists" don't get paid?? Well, now HOW could that be???!!

ElCapitan said:

I didn't know they had all those Prince videos!

Unfortunately most of them says they can't be shown outside the US...

I managed to watch "Gold" though.

Youtube is having a taunami of Prince stuff comin at them. For every 1 youtube removes, it seems like 5 more are uploaded.

Tremolina said:

-----
"but why would they really want ot pull them off when all they want to do is make money?"

WB pulled their videos off because they were not able to get the money they wanted from YOUTUBE. It is great that Universal worked something out if that is even true. Companies always hype up shit to make things look better then what they are. If you look someone has already posted an article about how 80% of the music this year did not even make any money. Universal took what it could get from YOUTUBE to bring in some dollars.

LiveToTell86 said:

Change your timezone to NYC before playing - that seems to work with a lot of sites.

Gav said:

The article says they fail 2 come 2 terms...I don't know...They call it a business...U'd think...business would wrap up an agreement quickly...I guess the music and the money don't marry very well.

money and control are wonderful illusions

laurarichardson said:

"$100 million in video-streaming revenue--most of it from YouTube" is hardly "some dollars" laura.
-
[Edited 12/28/08 15:36pm]