Google-owned YouTube has announced it is dropping content from independent music producers that have not signed up for the video sharing platform's upcoming subscription-based music service, UK's The Guardian reported.
“Our goal is to continue making YouTube an amazing music experience,
both as a global platform for fans and artists to connect, and as a
revenue source for the music industry,” the report quoted a Google spokesman as saying.
The spokesman said the subscription service would bring new revenue
streams “in addition to the hundreds of millions of dollars YouTube
already generates for them each year."
If this pushes through, artists like Adele, Arctic Monkeys and Jack White could see their videos taken down, the report said.
The Guardian said YouTube is about to test the new service, which will
charge a fee for people to watch and listen to music without ads, and to
download songs to their devices.
"We are excited that hundreds of major and independent labels are already partnering with us,” he said.
Responsibility to users
Robert Kyncl, Google's vice president and head of business at YouTube,
claimed the video sharing site already signed up labels representing 90
percent of the music industry.
"While we wish
that we had 100% success rate, we understand that is not likely an
achievable goal and therefore it is our responsibility to our users and
the industry to launch the enhanced music experience," he said.
The Guardian said YouTube attracts more than one billion monthly viewers, with music as one of its biggest categories.
It added the upcoming premium music subscription will compete with
Spotify, Deezer and Napster, and even Apple-owned Beats Music and
Google's own Google Play Music All Access.
'Catastrophic error of judgment'
The Guardian said trade body WIN branded YouTube's move as a "catastrophic error of judgment."
"They have suffered a simple but catastrophic error of judgement in
misreading the market," WIN's chief executive Alison Wenham said.
Wenham added YouTube was "setting itself up for failure" and only a few independent labels would agree to its terms.
"Music fans want a service that offers the complete range of music
available. This is something that companies such as Spotify and Deezer
do, both of whom have excellent relationships with the independent music
sector," she said.
Merlin, the licensing agency
of independent labels, estimates indies collectively have 32.6-percent
market share of the recorded music industry's sales and streams.
'Corporate hubris'
The Guardian quoted musician Billy Bragg as saying the move smacks of "corporate hubris."
I don’t think they realize what a stupid thing they’ve done," he said. — Joel Locsin/TJD, GMA News
source: gmanetwork.com
