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

Davey Winder
Tuesday, 10 March 2009 16:11

Business IT - Networking

Ultimately the only winner from situations such as this will be the trade in pirated music videos as more people turn to alternative sources for their music fix. The musicians will certainly lose out, but so will YouTube and the PRS.

YouTube's Patrick Walker reckons that while the negotiations continue, however, it will be working hard to create alternative methods of compensating musicians and rights-holders for content published on YouTube.

"In addition to various advertising options" Walker says "we recently introduced a click-to-buy feature that enables fans to purchase downloads of their favourite songs. We're also proud of our Content ID tools that help rights owners identify their content and even use the power of our community to increase advertising and revenue potential."

Yet it is mention of that very word 'negotiations' that seems to have ruffled feathers at PRS for Music which responds quite plainly that "This action has been taken without any consultation with PRS for Music and in the middle of negotiations between the two parties. PRS for Music has not requested Google to do this and urges them to reconsider their decision as a matter of urgency."

Walker, on the other hand, appears somewhat dismissive of the PRS when he states "We will continue to seek partnerships that benefit our community, music publishers, music labels and, of course, musicians and songwriters, and we will work hard with anybody who shares this commitment."

YouTube insists it is still working with PRS for Music in order to come to "mutually acceptable terms for a new licence" but is insistent that until such an agreement is reached "we will be blocking premium music videos in the UK that have been supplied or claimed by record labels."

PRS for Music, meanwhile, point out that YouTube owners Google has revenues of USD $5.7bn in the last quarter of 2008 alone.

Steve Porter, CEO PRS for Music, says he was "shocked and disappointed" when he heard of "Google's drastic action" and believes this will "only punishes British consumers and the songwriters whose interests we protect and represent."