Warner Music Makes Licensing Deal With YouTube

By JEFF LEEDS Published: September 19, 2006
YouTube Inc., the online video-sharing site, said yesterday that it had agreed to share advertising revenue with Warner Music Group in a deal that authorizes YouTube to show Warner Music videos and user-created clips that incorporate Warner music.
The deal reflects an effort by YouTube to continue running a service whose popularity is based largely on free viewing of consumer-generated video clips, many of which include copyrighted material like music, television broadcasts and films.
Under the revenue-sharing accord, YouTube.com will use special software to identify recordings used in videos posted by users and then offer the owner of the copyrighted music a percentage of the fee for advertising that would run alongside the clip. The deal also provides for the copyright owner to demand that YouTube remove the clip instead. Terms of the deal were not disclosed.
The deal marks the first time a major record company has licensed content to YouTube, whose emergence has created a philosophical divide among intellectual property owners.

Hey Everyone, I thought this would be a nice addition to the article I posted previously about YouTube. This article discusses the deal that YouTube had made with Warner Music that gives them the authority to show Warner Music videos and user-created clips that incorporate Warner music. Warner's label is very eager to market YouTube large audience, with clips at an estimated view of over 100 million times a day! YouTube.com will use special software to identify recordings used in videos posted by users and offer the owner of the copyrighted music a percentage of the fee for advertising that would run alongside the clip. Also, the copyright owner can request that YouTube remove the clip instead. According to this article, this deal marks the first time a major record company has licensed content to YouTube! Check out the entire article from the link below!

Michele Piccolino


http://www.nytimes.com/2006/09/19/business/media/19tube.html?ex=1316318400en=e6652285682a933bei=5088partner=rssnytemc=rss