Talks break down; Warner Music pulls videos from YouTube

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.

[Dylan_Wisor]

What's with CNET's sudden fascination with digital copyright?

[Dave_at_Recombinant]

My guess is, the brass at Warner are being *eviscerated* by managers of their top recording acts over this decision. One would think the greater focus at WMG would be in creating new revenue streams, rather than twisting the arms of paying customers.

[unknown unknown]

I am willing to bet that greed was the biggest factor in warner pulling their music.

[sgo7]

Like who cares... Bye Warner. Don't let the door hit you in the backside.

[jedhorovitz]

You can see all those videos and more at SINGINGFOOL.COM. Both YouTube and WMG are playing hardball and missing the point. Music Videos will always be more of a promotional tool than a product.

[Wickedashtray]

Youtube isn't "playing hardball". Warner is simply still in the dark ages thinking they are indispensable. Warner needs Youtube far more than youtube needs warner. Warner CEO was even so stupid to say that the makers of Guitar Hero weren't paying enough for Warners music. Keep in mind much of the music were tunes that were no longer making money. Additionally, kids don't have any specific preference for bands, they are simply buying things like the Aerosmith pack because its campy and fun, something that could have been done with any number of other groups. Warner has made millions from these kinds of things yet they still insist that they are being screwed. If they keep acting the way they are, they haven't seen nothing yet.......

[SJ2571]

"Warner has made millions from these kinds of things yet they still insist that they are being screwed" -- Never were more truer words spoken! The record companies are always acting like they're on the brink of Chapter 11 Bankruptcy, when it's simply not true and everyone knows it. No wonder they have such a bad business rep.

[colamix]

They don't need Youtube any more than they needed Napster...NOT. Personally I hope they continue burning bridges until every single venue avoids them like the plague they are. The sooner their crooked mafia-like business model goes extinct the better.

[3rdalbum]

Imagine if Warner had got its way. Then Youtube would have been paying Warner for the privilege of hosting its advertisements!

[macrhino]

Wow Madonna and Linkin Park gone! Will anybody notice?

[2opinionated]

I'm sorry for that!!!
However I think it's their loss and their artists'
I wouldn't want to be under a contract with them

It goes to show how much they don't get the new model
Poor Warner Music, going the way of the dinosaur.

See you Warner!!! Or maybe not...

Mario

[gabeheim]

I wonder how many sales Warner will lose as a result of this decision? In the past few years, I have made most of my decisions to buy a digital track after finding a video on youtube and deciding I like the song. Sorry, the 15 or 30 second preview is not enough for me, and it's been easier to find music on youtube than on last.fm.

[AppleSuxLeo]

So the RIAA is an Indian Giver ;)

[kdrobb2k]

Is this really news? With a few keystrokes this junk can be on your PC in under a minute. The muSICK industry is still in denial eight years after Napster.

[willwill222]

How would the record label make money off of free music videos on the internet? They're a bunch of idiots that need to pay their artists more instead of free loading for themselves.

This is the bit that gets me

"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."

This is from the people that have consistently screwed artists and songwriters for years and years then happily discarded them once they stop showing the same levels of profit. Now that they are starting to realise that they've messed up and that there's no place for them in the future of the music industry, they're attempting to play the sympathy card. Absolutely shameless

[Thegirlfromipanema]

Let's just leave the old stuff like Warner what it is and look at new and innovative concepts, great new sounds and free to use, anytime anywhere.

I found this site called www.tribeofnoise.com , they have all this original, globally collected music by fabulous musicians who choose to share their music using a creative commons license. You can totally add it onto your videos (once you remove the warner?s music) ? you can even use the music legally in commercials, etc. The musicians put it out there in the hopes of getting way more exposure and getting heard by more people. If you use it anywhere, you just have to acknowledge the musician. You get new sounds, the musicians get heard, win-win.

[M C]

Why does Warner want to screw its artists like that?

As a musician who wants to be seen, I can say I would never sign to Warner, as they clearly put their corporate bottom line ahead of their relationship with any partners, vendors or employees.

Another example of how major labels are dead.

[drywallrocker]

this sucks it screws up youtube video's if these arse hole's don't get smart and quit screwing around i pay for my music but if they screw up my youtube video which are done for nonprofit then i will never buy their **** again

[SPrule]

that sucks mann
they deleted ALL simple plan's music videos
and they're like my favourite band ever!
and youtube is my life coz it's the only place where i can watch all of their videos.
screw themm!

this is exactly why I don't feel bad about downloading music for free anymore. WMG has got some greedy and ignorant people running their biz!