Monday, March 9, 2009

Video sharing site stops UK access to official music videos

09 March 2009 - YouTube are in the process of blocking all access to “official” music videos on their website.

It is only UK users that are affected, and the ban involves a very complicated legal row, but for now, the video sharing network say "premium music videos" are off limits.

The internet giant described it as a "painful decision" which it knew would cause "significant disappointment".

It comes after the expiration of its licence agreement with PRS, who pay songwriters and composers the revenue from the hits the site gets. The agreement expired last year, and the two sides were in the middle of re-negotiating a new deal, however, Google says the new licence fee is too high.

"We have been unable to come up with reasonable economic terms with the PRS for music,” says Patrick Walker, YouTube's director of video partnerships. “Not only are the fees they want us to pay unreasonable in our opinion, we don't know exactly from them what we are having to pay for. So it is the equivalent of being asked to purchase a CD and not knowing what music is going to be on it, and so it's difficult to put an associated value to that.""If you use more music you should be prepared to pay more for your music."Andrew Shaw, PRS

However, PRS spokesperson Andrew Shaw, who is Managing Director of broadcast and online for the group, says they are shocked by Google's "drastic action" which will "punish" music lovers and songwriters.The licence fee's increased bacause of the rise in the number of videos being viewed on the site, which has gone up from somewhere in the region of 75 to 80 million at the beginning of last year, to almost 300 million at the end of last year.

This says Mr Shaw is why YouTube needs to pay more, “like with any product that you use when you’re putting together your service, if you use more electricity, you pay the electricity board more for your electricity. If you use more music you should be prepared to pay more for your music to ensure the creators of that music get paid and can go on creating.”

But the row doesn’t look like it will be nearing an end anytime soon, and PRS have even branded it a “publicity stunt” to try and bring the dispute into the commercial domain. They highlight the fact Google made $5.7 billion in the last quarter of last year, which they feel makes their request a tiny teardrop in a very large pool of cash the internet giant is generating.

YouTube say they are, “committed to music, and to working with the labels and the artists to reach out to users and drive revenues going forward.”

Watch this space.

Jo Youle

No comments: