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Warner Music Pulls Videos From YouTube

Contract negotiations between firms stall

By Wesley Oliver, Newser Staff

Posted Dec 20, 2008 4:40 PM CST

(Newser) – Warner Music ordered YouTube to remove all music videos by Warner artists today after talks to renew their licensing deal stalled, Reuters reports. The impasse could affect hundreds of thousands of video clips. The music group, home to artists such as Madonna and the Red Hot Chili Peppers, is demanding a larger cut of revenues, though no details were made public.

Warner expected to reap substantial profits from its pioneering 2006 deal with YouTube. But the music group found its payments—including a small sum it gets every time a video is played—to be “staggeringly low,” a source said. YouTube’s similar agreements with Universal Music, Sony, and EMI are also up for renegotiation, and the firms may follow Warner’s lead. Trying to satisfy partners, YouTube has made the development of revenue streams a top priority.

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Warner Music, home to artists including Madonna, Red Hot Chili Peppers and rapper T.I., was the first major media company to negotiate a deal with YouTube in 2006. (AP Photo)

Warner Music's order could affect hundreds of thousands of videos clips, as it covers recorded artists as well as the rights for songs published by its Warner/Chappell unit. (AP Photo/Branimir Kvartuc)

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We simply cannot accept terms that fail to appropriately and fairly compensate recording artists, songwriters, labels and publishers for the value they provide. - Warner Music Group

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Warner Music Pulls Videos From YouTube