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YouTube to introduce subscription fees for music videos

Google-owned video sharing site YouTube has been pretty comprehensive in its takeover of music video streaming over the last few years. After it got to grips with that pesky copyright thing and went legit, it became the de facto resource for bands to release new music through. No-one cares about chart success these days, but a few tens of millions of YouTube views will guarantee success forever.

The news that YouTube is planning to start a subscription-only music video service shouldn’t come as a surprise, then. As the main destination for video views (MTV who?) these days, labels probably want more money than pageview ads can generate. But it could be terrible news for small labels and unsigned musicians who’ve relied on its egalitarian nature for exposure in the past.

The company said that it has signed deals with “hundreds of major and independent” music labels to have their music featured on the site, but hasn’t confirmed beyond that exactly what it’s planning. What is certain, however, is that independent labels and their industry groups have taken to the media to criticise Google’s negotiating tactics, in which its claimed the giant is forcing small labels to sign up to streaming or face being pulled off of the free, ad-supported site. YouTube’s head of content confirmed this to the Financial Times in the UK yesterday.

The firm’s only public statement, however, is a bit more vague.

“We’re adding subscription-based features for music on YouTube with this in mind – to bring our music partners new revenue streams in addition to the hundreds of millions of dollars YouTube already generates for them each year,” YouTube said in a media statement.

According to various reports, the subscription service will allow for offline viewing on mobile devices and ad-free streaming while online – not unlike the business model pioneered by Spotify and, indeed, Google’s own Play Music service.

Visitors to the regular site will still be able to listen to ad-free music, but if the complaints are true only from bands signed up to the subs service.

“I don’t know why they’ve opened this hornet’s nest right now, apart from corporate hubris. I don’t think they realise what a stupid thing they’ve done,” lamented singer-songwriter Billy Bragg as the Worldwide Independent Network called YouTube’s tactics “bullying”.

But according to a YouTube company representative, they have already signed up 95% of all labels for the new service, and will only be blocking the outstanding 5%.

[Source – Reuters]

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