YouTube Battleground: UMG vs. Warner
Monday, December 22nd, 2008
New York, NY (December 22, 2008) - One company is caking to the tune of $100 million… the other just pulled all of it’s artists off the site, effectively losing them an equivalent sum. SMH. Just get the deal done Bronfman, the big company mentality is dead and fucking retarded. You want a piece of the pie? Fuck yo pockets and make some sense!!
…Warner Music, one of the first media companies to strike a licensing deal with YouTube, has demanded that the Google-owned site pull down all videos from its artists and songwriters, in a move affecting millions of pieces of professional and user-generated content.
“We are working actively to find a resolution with YouTube that would enable the return of our artists’ content to the site,” a Warner spokesman said: “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.”
Warner has advised YouTube users that they could find alternative ways of incorporating music in their videos, steering them to Audioswap, a library of music for which rights have been pre-cleared. They have kept their videos available on other online services, including MySpace Music and its own artists’ sites. YouTube defended its licensing agreements and technology, saying they had created “a win-win situation” for artists and fans.
“Our ultimate goal is to treat everyone fairly: to respect the rights of musicians, songwriters, and their biggest fans, so that everyone can continue enjoying original content on YouTube,” it said.

On the other side of the coin, UMG just announced they’re seeing “tens of millions of dollars” from YouTube. A lot of the credit is being given to Doug Morris, Universal’s CEO, but seeing how clueless the man was only a year ago, I am struggling to believe he’s the driving force behind UMG’s sudden embrace of the digital world. I suppose that’s immaterial because the deal got done, but don’t get it twisted; they’re going to push that 800lb gorilla bullshit as far as they can. The record company mentality is just like big oil, stupid-ass Clinton era financial appointments (Fannie and Freddie) that have contributed to this recession and Ron Browz’ career, though: it won’t last. The fact is this band-aid will supplement lost revenue from record sales until the backend collapses. And when that happens, you’ll see a whole new business model in this industry. I suspect it might even be a fair one:
…For the first time, there are signs that YouTube is driving significant revenue for itself and some of the video site’s partners. In an interview with CNET News this week, Rio Caraeff, executive vice president of Universal Music Group’s eLabs, said the largest of the top recording companies is bringing in “tens of millions of dollars” from YouTube.
“(YouTube) is not like radio, where it’s just promotional,” said Caraeff, who heads up Universal’s digital group. “It’s a revenue stream, a commercial business. It’s growing tremendously. It’s up almost 80 percent for us year-over-year in the U.S. in terms of our revenue from this category.”
Universal, the home of such acts as Akon, the Black Eyed Peas, and U2, has a two-part licensing deal with YouTube, as do the other major labels. Under the deal, the recording companies post music videos on the site and share advertising revenue with YouTube. The two companies also share ad revenue for music posted to the site by users.
“YouTube is the ideal place for labels to promote music and for fans to discover new artists and old favorites,” said Chris Maxcy, YouTube’s partner development director. “We’re committed to being a good partner to music labels and are pleased they’re having success on the site.”


