Is YouTube doing an iTunes by blocking music videos in royalty row?

Davey Winder
Tuesday, 10 March 2009 16:11

Business IT - Networking

Brits are discovering that decent music content on YouTube is disappearing fast after the online video giant decided to block all premium music videos in a row over a hike in royalty payments to musicians, songwriters, composers and publishers. So is Google copying Apple with the hard man tactics and more to the point will it work?

Last year Apple threatened to close the iTunes Store rather than accept smaller margins or raise the cost of music downloads following a demand for raised royalties by the Copyright Royalty Board in the US.

Understandably, an agreement was reached and that never happened. But now it looks like YouTube has decided to adopt an equally tough approach to royalty payment negotiations in the UK.

It has opted to block all premium music video content rather than agree to what it calls the "prohibitive licensing fees" demanded by PRS for Music, the body which collects royalty payments in the UK.

For the time being then, big name acts will disappear from YouTube in the UK. If the Pope were to sing on his official YouTube channel that would be OK, if rather painful, but don't bother looking for the latest U2 video.

A PRS for Music spokesperson says "Google has told us they are taking this step because they wish to pay significantly less than at present to the writers of the music on which their service relies, despite the massive increase in YouTube viewing." 

While Patrick Walker, the Director of Video Partnerships, Europe, Middle East and Africa for YouTube insists "We value the creativity of musicians and songwriters and have worked hard with rights-holders to generate significant online revenue for them and to respect copyright. But PRS is now asking us to pay many, many times more for our licence than before."

Of course, we all know that this dispute will end soon enough with a compromise agreement. Both sides need the other. We also all know that the longer it continues the more people will turn to alternative sources for content such as Pirate Bay.

Want to read more arguments from both sides in this dispute? We have further comments from both YouTube and PRS for Music on page 2...

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