The following was on MarketCluster
Warner Music is partnering with YouTube in a content licensing deal that means the label will make money when its content is used in videos that appear on YouTube. No deal terms were disclosed. Warner is making its entire music video library available on YouTube and the pair will share ad revenue related to the video content. YouTube is also poised to roll out a new filtering technology that aims to monitor partner content on its site and then pay royalties accordingly. It will also allow YouTube to remove any videos using content from partners such as Warner that the partners feel offensive. YouTube says it plans to sign similar deals with other copyright owners than Warner.
The takeaways for me here are:
- They are cleaning up their copyright mess which includes taking some content off their site
- The revenue share deal is just like the first ad-funded content deal on the web that Yahoo! struck with Reuters back in 1996
- This limits both the upside – fewer videos means less upside – and the downside – they are less likely to get sued/shut down