12.22.2008

Youtube and Warner Bros. Records has falling out




After a contract was nearly reached, Warner Music changed its terms; angering YouTube and causing them to threaten to remove videos from their website.




"Royalties received from internet media" has indeed become a very hot
topic as of late. And of course it should be as YouTube, the
Google-owned and operated video-streaming website, is reportedly
earning millions of dollars for record companies like Sony and Universal.


Warner Music’s contract with YouTube is currently over, and now
contract negotiations have turned sour. All seemed fine until Warner
Music changed their terms, sparking YouTube to announce that it will be
pulling Warner Music’s videos off of their website.



Unfortunately for YouTube, some of its highest-viewed videos include
Warner artists, such as Madonna and Metallica. Pulling the videos would
hurt them as well, and they have yet to do so despite the threats.


Reported by DailyTech, Warner made $639 million in the digital revenue
department this fiscal year, with only one percent of that coming from
YouTube. Though one percent doesn’t seem significant, not coming up
with a new deal could still potentially cost the record company
millions of dollars.



Therefore, a new contract is likely, as losing a media hub
such as YouTube would be a big blow to Warner Music who is feeling the
hard times just as much as the rest of the recording industry.
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