YouTube to start pulling independent music videos according to report
YouTube is only days away from the start of a mass removal of independent music content, according to the Financial Times.
The report states that on YouTube’s part this would be necessary to ensure that all of the content on the platform conformed to its latest contractual terms. These terms have been subject to open criticism and debate by the independent music industry since they tie YouTube’s market-dominating video service with its yet-to-be-launched music streaming service.
Labels that don’t accept what have been defined as below-market rates for the music streaming service will be unable to carry on hosting - and monetising - their videos on YouTube.
In the past three weeks the global independent music network WIN has started a world-wide campaign to get YouTube to make a U-turn on its ultimatum. Now it looks like the Google-owned streaming giant is going for an all-out fight with the Indies which could prove to be extremely unpopular with consumers and deprive the service of some essential catalogue.
The quote of the Financial Times that will really turn some heads, attributed to YouTube’s Robert Kyncl, is his claim that the video platform has licensed content from 90% of the music industry and to be missing just 10%. This - given the number of large indies missing from the deal seems to be a gross misrepresentation on YouTube’s part.
Charles Caldas, the CEO of the independent global rights agency Merlin, spoke about the misrepresentation of music industry market shares just two months ago at AIM’s Music Connected event. In the chart presented there independent label content was shown to make up 32% of digital music consumption split by master ownership, far more than the 10% indicated by YouTube.
If the report is correct, Google is making a big bet if it does start to cull independent videos. The European independent music industry body IMPALA has already filed a complaint with the European Commission around YouTube’s practices and it may well be that the removal of content could exacerbate Google’s liability should a full-on investigation take place.
As far as YouTube’s music streaming service, the question mark lies with the upcoming services’ business model & price points. If the rates it is offering independents are substantially lower than those paid by the likes of Spotify and Beats Music is that because it will also price the service lower than its competitors? And if so how did YouTube manage to iron out deals with the majors on this one and on what terms?
Too many question marks are still open but a full-on war between Google and the Independent sector seems now all but inevitable.
(Andrea Leonelli)