Just days after Universal Music Group started describing the social networking site YouTube as being copyright infringers, indicating that a lawsuit is about to happen, Warner Music Group decided to sign partnership with YouTube. Under this commercial partnership, YouTube will legally be able to help distribute Warner's music videos, Behind-the-scenes footage, artist interviews and original programming via YouTube. Users will also be allowed to use music from Warner's catalogue in their own video creations they upload to YouTube.
Up until now, Warner's and other record company's music videos have regularly been uploaded to YouTube by its users without permission. However, unlike Universal's way of seeing YouTube, Warner decided to try innovation rather than consider taking the legal action approach.
YouTube is working on a new advanced content identification system that will identify music videos in able to ensure Warner and other record labels down the line will get royalties for use of their works. This identification would also identify audio in user's uploaded videos, such as that from Warner's catalogue to cover royalty costs in these also. In order to pay for the royalty charges, revenue will be generated using advertising shown around the videos. Warner Music executive Alex Zubillaga expects this deal to generate a significant amount of revenue as the usage grows.
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The companies said YouTube users would also be able to incorporate music from Warner's catalog into the videos they create and upload. Music videos belonging to Warner Music and other record companies are regularly uploaded to YouTube by its users but usually without permission from the labels. |
Despite how strongly Warner has been against free file sharing of its music, it is interesting to see how quickly they change their attitude once they realise they can potentially get a good revenue just by allowing users share and download their music videos as they would with music. Obviously this still does not mean that it is now ok to share music videos elsewhere, never mind its music, but unlike Universal's comments about YouTube, at least they come up with an innovative approach instead of grabbing the RIAA's favourite weapon of choice '“ Legal action.
Source: Reuters - News
