The Deck is Stacked and YouTube’s Holding All The Cards.

Damned if you don’t. Damned if you do. Steve Cooper from Warner Music Group said it best yesterday upon renewing the WMG global licensing deal with YouTube. “There’s no getting around the fact that, even if YouTube doesn’t have licenses, our music will still be available but not monetized at all.”

What’s at the root of this? YouTube isn’t an “on-demand music platform” per-se. So it’s not governed by the same rules that services such as Spotify, Apple Music, or Deezer are. That changes the leverage that labels have in negotiating fees. Take a look at the graph below from the IFPI.

 

Read Steve Cooper’s confidential internal memo in full along with commentary at Music Business Worldwide:

https://www.musicbusinessworldwide.com/warner-youtube-sign-new-deal-difficult-circumstances/

And for a much deeper dive and to read about the discrepancies that Steve cites based on the IFPI data, here’s a link to the 2017 Global Music Report synopsis.

http://www.ifpi.org/downloads/GMR2017.pdf

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About the author

Mike Dias is a Sales Director for Logitech. He specializes in consumer electronics & pro audio with an expertise in headphones & portable audio. He has over 15 years of experience selling custom handcrafted in-ear monitors.

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