Youtube To Remove Music From Independent Labels
Posted by Joseph Lee on 06.17.2014
Due to royalty payments for its subscription service...
The Financial Times (via NME) reports that Youtube will start to remove videos by artists signed to independent labels after arguments over royalty payments. This includes both XL Recordings (Adele, Jack White) and Domino (Arctic Monkeys, Franz Ferdinand). The videos could be gone "within a matter of days" according to Youtube's head of content and business operations Robert Kyncl.
The problem between the labels and Youtube comes from Youtube's plan to launch a subscription music serve and the royalties that the labels will get. Kyncl says "90 per cent of the music industry" has signed up but several "influential" labels, supported by trade bodies WIN, AIM and IMPALA, claim the deal is "indefensible". The major labels have signed a three-year licensing deal with Youtube with an advance of about $1 billion.
Executive Chair of IMPALA Helen Smith said Youtube is "acting like a dinosaur" with the threats to remove the music if the labels don't sign a deal. Kyncl has said it's a fair deal. He added: "We're paying them fairly and consistently with the industry."