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Introduction

The ongoing debate over YouTube’s value to the recorded-music industry was reignited at the end of last year, with news that the online video service had signed new licensing deals with UMG and SME.

Highlights

  • Although rights holders have long complained that YouTube pays a lot less than the audio on-demand streaming leaders, record companies have had little option but to sign licensing deals with the service, given its safe-harbor protection.

Features and Benefits

  • Evaluates the latest licensing deals between YouTube and the major record companies.
  • Looks at how future licensing deals could be affected, should there be a change in circumstances.

Key questions answered

  • Why do record companies license their content to YouTube, given the low rates paid by the online video service?
  • What circumstances could change to make YouTube more financially valuable to music companies?

Table of contents

Ovum view

  • Summary
  • Record companies maintain close ties with YouTube
  • Practical approach to licensing
  • Change in the longer term

Appendix

  • Author

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