No More Warner Music on YouTube

Techtree News Staff, Dec 22, 2008 1607 hrs IST

Google's online video-sharing site will soon be devoid of video clips of the music company as contract talks come unstuck

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The ongoing talks between music major Warner Music Group and the popular online video-sharing site YouTube concerning revenue sharing have finally broken down after several rounds of negotiations.

The music company has asked the site to remove all music video clips of its recorded artists as well as songs published by its Warner/Chappell unit, including those of artists who are not signed to Warner Music record labels.

Though Warner did not specify the reason for disagreement, it was implicit in its official statement following the breakdown of the talks that it was not happy with the revenue-sharing equation. "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, along with Universal Music and Sony Music, entered into a business deal with YouTube in 2006 boosting its visitor traffic. Later the site was acquired by Google.

With Warner's exit, YouTube could face the squeeze from its other stakeholders, who now include EMI Music, for a bigger slice of the revenue pie.

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