Warner, YouTube near deal for music videos
Warner Music Group and YouTube are in the midst of finalizing an agreement which would allow music videos from top artists such as Madonna and Green Day to be featured on the popular website once again.
Described as imminent by one source, the deal would also settle a dispute over licensing rights caused by Warner Music to pull music videos by its artists from Google Inc’s YouTube in December 2008. The deal, first reported by AdAge stated that YouTube and Warner both declined to comment on it.
YouTube’s deal with Warner Music, the third largest music company means their artists would once again appear on the world’s most popular video sharing website. Other entertainment groups such as EMI Music, Sony Corp’s Sony Music Entertainment and Vivendi SA’s Universal Music Group have all renewed their deals with YouTube.
While financial details still remain unclear, Warner’s Music Chief Executive, Edgar Bronfman is intent to improve terms of their deal with YouTube. Music industry executives have all faced a declining music market due to a drop in CD sales, slowing digital music growth.
The deal also would assist Warner’s new music video website called Vevo. It is backed by Universal and Sony, and the deal would mean it would be supported by YouTube’s technology platform. Talks about Warner’s ‘Vevo’ are still in early stages, but could break down a wide range of issues. Industry experts say Vevo would create a more ‘sophisticated’ experience of music on the web.
Web videos are catching up with radio and music television as one of the most important music discovery tools.