Warner Music Videos Removed From Youtube

Story on Yahoo! News

Story on Oh No They Didn't

Negotiations between Warner and YouTube broke down and now Warner is demanding that all the videos from the Warner label and all subsidiaries be removed. No date mentioned.

The order could affect hundreds of thousands of videos clips, as it covers Warner Music's recorded artists as well as the rights for songs published by its Warner/Chappell unit, which includes many artists not signed to Warner Music record labels.

The talks fell apart early on Saturday because Warner wants a bigger share of the huge revenue potential of YouTube's massive visitor traffic. There were no reports on what Warner was seeking.

[...]

The music companies typically get paid a share of any advertising revenue associated with the video and a per-play payment for every video viewed. The per-play fee is usually a fraction of a penny and with millions visiting YouTube everyday it was all expected to add up to a substantial amount.

But a source familiar with Warner Music's talks said the amounts it has been receiving from YouTube were "staggeringly low".


[...]

YouTube also has agreements with Vivendi's (VIV.PA) Universal Music Group, Sony Music Entertainment and EMI Music. Warner's move could see them also making tough demands for higher fees.

The demands could leave YouTube in a difficult position as it tries to balance the need to pay a reasonable fee to content partners, including TV and movie companies, and also generate enough return on the substantial investment needed to keep streaming millions of videos around the world.

Noooooo, whyyyyy? This seems like a classic case of Warner cutting off its nose to spite its face. The comments on ONTD offer many testimonials to the effect that people discover new artists on YouTube because music channels such as MTV, VH1 and Fuse do not play music videos at peak hours anymore. We all know that the music industry is suffering, but do they have to punish the public? Repeatedly?

So users will increasingly turn to dailymotion and other sites which offer free viewing on demand. And Warner will have no revenue. SMART IDEA WARNER.