Tuesday, December 23, 2008

Warner Music And YouTube Part Ways

Over the weekend Warner Music Group and YouTube failed to reach a new deal. Based on a statements reported by Reuters, it appears that the music label was demanding a larger chunk of revenue from video streams than YouTube was willing to accept.

Both companies are publicly claiming responsibility for the parting, with YouTube firing first with a statement posted to their blog on Friday. In their statement they claim users may "notice videos that contain music owned by Warner Music Group being blocked from the site."

Warner responded on Saturday stating they ordered YouTube to remove all music videos by its artists after contract negotiations broke down. "We simply cannot accept terms that fail to appropriately and fairly compensate recording artists, songwriters, labels and publishers for the value they provide," Warner said in a statement

The full details are a bit speculative at this point with at least a few reports saying it was indeed YouTube that made the decision to pull Warner's content. A CNet news article citing, "high-level sources with knowledge of the negotiations" seem to back YouTube's position. CNet's sources claim, "YouTube began removing videos from its site after Warner came to YouTube with an "11th-hour demand" for better financial terms."

For now at least is appears that we will no longer see videos from popular Warner artists such as Led Zeppelin, Madonna, TI, Eric Clapton, REM, Red Hot Chili Peppers, and the Grateful Dead, on YouTube.

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