On Saturday last week Warner Music Group ordered YouTube to remove all music videos of their artists from the site, as negotiations between the two groups crumbled. There are literally thousands of video’s that could be pulled from YouTube because of this order.
Negotiations between YouTube and WMG broke down Saturday because supposedly they were asking for a larger share of YouTube profits. Although it is not said how much WMG was asking for, they were quoted as saying “We simply cannot accept terms that fail to appropriately and fairly compensate recording artists, songwriters, labels and publishers for the value they provide.” It seems YouTube wouldn’t oblige the request as they now have to pull all music videos under the WMG label, and also music video under Warner/Chapelle group as well.
WMG was one of the first major media companies to make a deal with YouTube in 2006, and since they are pulling out (and taking their videos with them), the other media groups paired up with YouTube may be asking for better compensation as well. Sony Music Entertainment, and EMI Music are among the other groups who are currently signed with YouTube.
WMG’s video pull is a tough blow for YouTube, and it has come at a bad time, since Hulu is hot on their heals. From here we can only wait and see if the other media groups follow WMG’s lead and try to hit YouTube up for some more cash as well.
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