Blog Post

YouTube's UK Music Deal Breaks Down Over Costs; Thousands Of Videos Blocked

imageYouTube today started blocking access to thousands of music videos in the UK after negotiations to renew its rights deal with the main royalty collector broke down. Back in August 2007, Google (NSDQ: GOOG) had struck its first such deal with a royalty society, MCPS-PRS Alliance, gaining licenses on 10 million pieces of music in return for a flat fee, which was never disclosed. That has now expired, however, and GooTube’s EMEA video partnerships director Patrick Walker has gone public to announce negotiations have broken down over price. See the full story here on our sister site paidContent:UK.

2 Responses to “YouTube's UK Music Deal Breaks Down Over Costs; Thousands Of Videos Blocked”

  1. Free Music Streaming + Advertising is a model still in its infancy – with services by WE7 and Youtube still not entirely proven to be profitable as they stand. Google is long rumored to be running Youtube at a loss; how can PRS for Music think it's already time to bump up the fees?
    Slowly maybe – as this model reaches mainstream and sound monetization processes are put in place – fees could be raised but I can't fault Youtube for reacting as they did.

  2. Youtube highlights the single common fact that the minima/fixed rates defined by the JOL does not reflect the economical world out there. Put anyone from any legal music services together in a corner and the message is consistent, we want to pay but the rates make no economical sense.

    Minima rates are the biggest single threat to a healthy legal digital society. The facts are simple if legal entities cannot make money then its better to give in and let the pirates have total control. We have seen this many times already.

    The Internet gives scale and that is never taken into account so actually 10% of a big something is much more than 100% of nothing. In the last 90 days We7 have taken 500,000 people from the net of piracy and created a valuable legal mechanism that values the artist and the music.

    Protecting fixed or minima rates is a bad case of the Emperors new clothes, they dont protect the artist and dont increase the potential wealth available. They destroy the potential of value to the artists with the exception of the chosen few.

    Its time that people stopped trying to hide from the realities and get on earning money for the artist and the industries together.

    Steve

    Steve Purdham
    CEO and founder investor
    We7 – Great Music FREE