Music Industry to YouTube: $1 Billion Isn't Enough

By Michelle Nicolson February 06, 2014

Tension between Google-owned YouTube and the music industry is nothing new, as the Internet video giant has long since rankled music executives over copyright issues.

But Google has made an effort to make good to musicians, paying out more than $1 billion to music rights holders over the last several years, according to Tom Pickett, YouTube vice president of content, in a panel discussion this week at the Midem music industry show in Cannes, France.

"We are very much into music," Pickett said, adding later during the discussion that, "If you think about it, we’ve paid out to the music industry over the last several years over $1 billion. So there is money being generated in this ad-supported model. It is going to artists."

However, Pickett acknowledges that since the money goes out to thousands of right holders, the per-view payment is relatively small for many artists.

Therein lies the problem, says the music industry. “When I looked at the billions of streams there were in music videos, and the pounds and pence coming in to the industry from that, it was a very small number,” said BPI chief executive Geoff Taylor in an article for The Guardian.

Google has made strides in helping the music rights retain those rights as well as make money when they are used, installing technology that identifies when users upload videos containing copyrighted music. Ad revenue on YouTube and revenue generated through the Google Play music subscription service are two other ways the Internet giant has tried to work with the music industry.

But it’s not enough, says some music executives.

“I am concerned with YouTube entering the market because for YouTube everything is about dominance, and dominance is connected to destruction,” said Horst Weidenmueller of !K7, an indie firm, in The Guardian. “I would rather prefer perhaps Google not being in music.”

However, Google’s YouTube is very much in music, as music videos account for 38.4 percent of all views on YouTube, according to Videolink and Tubular Labs. That means both parties have a lot of reasons to try to work together.

Part of the problem is the music industry’s business model, already usurped in the last two decades by digital technology like MP3 services, is still in flux. The growth in streaming music services is also shaking things up industry.

 “It’s not a place to make money right now, but it’s not primarily because of YouTube or Google in my mind, it’s because the people representing the content primarily don’t understand the marketplace,” said Jordan Berliant, of The Collective Music Group.




Edited by Cassandra Tucker

TechZone360 Contributing Writer

SHARE THIS ARTICLE
Related Articles

Microsoft Research Project Allows for Inexpensive 3D Scanning from a Smartphone

By: Christopher Mohr    8/27/2015

It is now possible to perform 3D scanning from a smartphone, without additional hardware or an Internet connection, thanks to a new Microsoft Research…

Read More

Amazon's Scaled Back Consumer Device Efforts, Dash Button, and More

By: Paula Bernier    8/27/2015

Word is that Amazon is scaling way back on its consumer devices efforts, having let go of dozens of Lab126 engineers who worked on its Fire phone, acc…

Read More

The 4K War is Brewing, but Don't Expect a Crowned Winner

By: Special Guest    8/27/2015

The hype around 4K Ultra HD video is growing and we're seeing it gain traction in real ways. From the NFL Network and CBS using 4K cameras to capture …

Read More

Wallet Wars Part 2: Thanks to EMV, the Force is with Mobile Wallets

By: Special Guest    8/26/2015

In December 2015, when "Star Wars: The Force Awakens" hits movie theatres across the U.S., a very different type of force will 'awaken' the mobile wal…

Read More

Major Automakers Forge Alliance to Combat Cyberattackers

By: Joe Rizzo    8/25/2015

If you take a few minutes to think about what hackers go after, you'll realize that it is anything that has an Internet connection. Thanks to the Inte…

Read More