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Warner Music Group pulls videos off of Youtube, Is Warner being too greedy?

jean 2009/02/21 21:43:22
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Warner Music pulls videos from YouTube


By Yinka Adegoke, AFPDecember 22, 2008

NEW YORK - Warner Music Group ordered YouTube on Saturday to remove all music videos by its artists from the popular online video-sharing site after contract negotiations broke down.


The order could affect hundreds of thousands of videos clips, as it covers Warner Music's recorded artists as well as the rights for songs published by its Warner/Chappell unit, which includes many artists not signed to Warner Music record labels.


The talks fell apart early on Saturday because Warner wants a bigger share of the huge revenue potential of YouTube's massive visitor traffic. There were no reports on what Warner was seeking.


"We simply cannot accept terms that fail to appropriately and fairly compensate recording artists, songwriters, labels and publishers for the value they provide," Warner said in a statement.


YouTube is hugely popular, with more than 100 million viewers in the United States alone in October, according to comScore, a Web audience measurement firm.


Warner Music, home to artists including Red Hot Chili Peppers and rapper T.I., was the first major media company to negotiate a deal with YouTube in 2006. Its executives believe that deal gave the site legitimacy in the eyes of search giant Google Inc which bought it soon after for $1.65 billion.


As part of the original 2006 negotiation, Warner, Universal Music and Sony Music all took small stakes in YouTube pre-acquisition and profited when the Google acquisition closed.


The music companies typically get paid a share of any advertising revenue associated with the video and a per-play payment for every video viewed. The per-play fee is usually a fraction of a penny and with millions visiting YouTube everyday it was all expected to add up to a substantial amount.


But a source familiar with Warner Music's talks said the amounts it has been receiving from YouTube were "staggeringly low".


YouTube representatives did not immediately return calls for comment.


YouTube executives have spent most of 2008 stepping up efforts to develop revenue streams on the site partly in a bid to keep content partners happy. It has been in long negotiations with Warner on how best to split revenues until things came to a head in talks on Friday.


"Despite our constant efforts, it isn't always possible to maintain their innovative agreements," YouTube said in a statement on its blog about difficulties of music licensing. "Sometimes, if we can't reach acceptable business terms, we must part ways with successful partners."


YouTube also has agreements with Vivendi's (VIV.PA) Universal Music Group, Sony Music Entertainment and EMI Music. Warner's move could see them also making tough demands for higher fees.


The demands could leave YouTube in a difficult position as it tries to balance the need to pay a reasonable fee to content partners, including TV and movie companies, and also generate enough return on the substantial investment needed to keep streaming millions of videos around the world.

© Copyright (c) Canwest News Service


EDIT****

Warner Bros Demands are as follows:

In order to keep WMG's music on the site WMG wants

1. Huge Royalty payment whenever a video of theirs has been viewed
- This royalty payout was said to be more than royalties for CD sales.

2. Wanting to place ads to buy the song/album inside the video not just on top of the video description box.

3. Youtube had to enact a monthly or yearly fee on Youtube members who want to upload videos which contain any WMG's copyrighted Content.
-- This conflicts with Youtubes policy of free membership.
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Top Opinion

  • dannythemanny41 2009/09/05 00:34:03
    Yes. And they have no right to be
    dannythemanny41
    +4
    I had posted a guitar cover of Paramore's That's What You Get and those douchebags took it down.

    Although my account is still intact, I have every right to hate those greedy fuckers. They've taken down a lot of good videos and I will not stand for it. They think that if a video is posted containing their music, EVEN if it's a small snippet of it and EVEN if it's accidental, that the person who uploaded said video is hell-bent on making money off it, even if that isn't his/her intentions, and therefore, it gets deleted/muted.

    The question remains though, how much longer do you think this is going to last?

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  • BuddyBoy600alt 2009/12/05 04:27:52
    All of the above
    BuddyBoy600alt
    And another thing is, They got rid of Morlia666. Morlia666 posted Disney stuffs. And Warner Music Group claimed it. I have a feeling that Disney sued Wanrer Music Group.
  • dannythemanny41 2009/09/05 00:34:03
    Yes. And they have no right to be
    dannythemanny41
    +4
    I had posted a guitar cover of Paramore's That's What You Get and those douchebags took it down.

    Although my account is still intact, I have every right to hate those greedy fuckers. They've taken down a lot of good videos and I will not stand for it. They think that if a video is posted containing their music, EVEN if it's a small snippet of it and EVEN if it's accidental, that the person who uploaded said video is hell-bent on making money off it, even if that isn't his/her intentions, and therefore, it gets deleted/muted.

    The question remains though, how much longer do you think this is going to last?
  • diaverde08-AmericanKilljoy 2009/02/22 04:59:21
    No, but they should have came about it another way.
    diaverde08-AmericanKilljoy
    They do it because there isn't a fair amount of revenue going to the artists that made the videos.
  • jean diaverd... 2009/03/05 05:52:48
    jean
    I appreciate your opinion however I have to disagree with you. Demanding Youtube to pay for whenever a video gets viewed is the same as demanding the Superbowl pay budweiser whenever their commercial is aired. Its unfair and rediculous. If anything Youtube is free advertisement, just like myspace, stickam, and facebook. I don't see WMG running to Myspace headquarters and demanding that their artist's music be taken down because of lack of payment, why should Youtube be any different?
  • jean 2009/02/22 03:39:39
    Yes. And they have no right to be
    jean
    Why is it that whenever the music industry is not making money off of a media source using their material they want to swing the copyright stick? I mean seriously, its a song in a video. Its not like you can download the video and extract the audio later. And whats even funnier is that they forced all of their artist to erase all of their music videos. So now how are their artist going to advertise their singles? VH1 and Mtv have whored themselves to reality television, and Fuse is simply null and void. That of course only leaves the band website and the radio stations, and if you are an up and coming artist you can forget about the radio.
  • windwolf14 2009/02/22 03:22:14 (edited)
    Yes. And they have no right to be
    windwolf14
    +1
    i am a You Tuber and when a song is used in my videos people go and get the albums. i dont take freebees unless the song i want isnt in an album. i always give credit to the music artists but still some of my best gems have been removed. and now my account is gone BOYCOTT WMG!!!
  • BuddyBo... windwolf14 2009/12/05 04:37:03 (edited)
    BuddyBoy600alt
    Yeah! And they got BobthePizzaBoy suspended. How does Willy Wonka feel about it?

    yeah bobthepizzaboy suspended willy wonka feel
    Willy Wonka: "IT'S ALL THERE, BLACK AND WHITE CLEAR AS CRYSTAL! YOU STOLE FIZZY LIFTING DRINKS! SO, YOU GET NOTHING! YOU LOSE! GOOD-BYE! SIR!"
    Warner Music Group CEO Edgar Bronfman Jr.: "You are a crook. THAT'S WHAT YOU ARE! HOW DARE YOU DO A THING LIKE THIS?!? YOU KNOW, THE ONLY SOURCE MY WIFE CAN PROVIDE IS TINY BIT OF WMG STOCK..."
    Willy Wonka: "I SAID GOOD-BYE!"
    crook source wife provide tiny wmg stock willy wonka good-bye
    Willy Wonka: "Oh, And Disney Music Group, YOU WON! YOU DID IT!"
    Disney Music Group CEO Bob Cavallo: "I did?"
    Willy Wonka: "YES! YOU DID! Congratulations"
    Disney Music Group CEO Bob Cavallo: "Yahoo!"
    (Willy Wonka teases at Edgar Bronfman Jr.)
    (Edgar Bronfman Jr. runs out of the room, crying for his mother)

    Got the mix up between Willy Wonka and the Chocolate Factory and Harry Potter and the Chamber of Secret. (Where Ronald Weasely receives a howler letter from her mother.)
  • BuddyBo... BuddyBo... 2009/12/05 04:48:08 (edited)
    BuddyBoy600alt
    I also imagine that Bob Cavallo (Disney Music Group), George Martin (EMI Records Ltd.), Doug Morris (Universal Music Group), and Rolf Schmidt-Holtz (Sony Music Group) were voting Edgar Bronfman Jr. off the Weakest Link.
    martin emi records doug morris universal music group rolf schmidt-holtz

    George Gray: "All of you will continue, But one of you will not! It's time to vote-off!
    Let's start with Edgar Bronfman Jr. Hey, Edgar, Who are you voting for?"
    Edgar Bronfman Jr.: "Bob Cavallo"
    George Gray: "Okay. And Bob, Who are you voting for?"
    Bob Cavallo: "I must say, It's got to be Edgar Bronfman Jr."
    George Gray: "Alright. And George Martin, What is your vote?"
    George Martin: "Edgar Bronfman Jr.":
    George Gray: "Sure thing. And what is your vote, Doug Morris?
    Doug Morris: "I must say, Edgar Bronfman Jr."
    George Martin: "Okay, Last but not least. What is your vote, Rolf Schmidt-Holtz?"
    Rolf Schmidt-Holtz: I go for Edgar Bronfman Jr."
    George Gray: "Sorry, Edgar Bronfman Jr. With most vote, You are the Weakest Link. Good-Bye!"
  • Peggy 2009/02/22 02:08:02
    Undecided
    Peggy
    I'm leaning toward Warner being greedy crooks, but I can't form an educated opinion as the article doesn't give enough details. I'm pissed that my favorite videos are gone though.
  • jean Peggy 2009/02/22 02:41:08
    jean
    sorry I forgot to add the stipulations, they're up now.
  • BuddyBo... Peggy 2009/12/05 04:50:07
    BuddyBoy600alt
    Did WMG terminate your account? I think if you have log in to your account, It would read "Your account has now been permanently disabled."
  • SweetLiz1965 2009/02/21 22:28:40
    Yes. And they have no right to be
    SweetLiz1965
    Being very greedy!!! I had lots of them as my favorites and just gripes me! greedy lots favorites gripes
  • Joseph 2009/02/21 21:57:55
    Yes. And they have no right to be
    Joseph
    They are Poopy HEADS LMAO!!!!!! poopy heads lmao

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