Major Music Deals for Google and YouTube
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Written By Kate Zimmermann | October 9, 2006 | Share This
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The music labels have finally gotten some wits about them and signed distribution deals with YouTube and Google. For YouTube: Universal, Sony BMG and CBS will begin offering video content on the site, including music videos (from the first two), short program clips (CBS), news & sports analysis (CBS) and ad promotions/ “mini-previews” (CBS). The deals are largely attributed to YouTube’s content identification technology that allows media companies to track copyrighted content, share ad revenue, and remove content (per request).
In the meantime, Google has signed deals with Warner and Sony BMG under similar terms for Google Video. In a unique twist on ad revenue, Google will begin offering both Warner and Sony BMG’s video content to Google Adsense partners, with revenue split between the host site, Google, and content owner. The official press release reports, “In the coming months, users will also be able to access content from SONY BMG MUSIC ENTERTAINMENT artists through Google’s partner websites in its AdSense network. SONY BMG MUSIC ENTERTAINMENT, Google and web publishers will now be able to monetize professional video content while respecting copyrights through these video distribution models.” Similar terms were stipulated for Warner videos.
Both the YouTube and Google deals were based on the initial agreement between YouTube and Warner earlier last month. For YouTube, the Warner contract was groundbreaking clearance to use copyrighted content. For Warner, it was part of an integrated branding approach to new media. Following the deal, Warner launched a series of promotional videos on YouTube that “encouraged user engagement” and increased brand visibility.
Overshadowing music industry press, however, are ever-intensifying rumors that Google will buy YouTube for $1.6 billion. Speculation of the Google-YouTube buyout began last week with a report from TechCruch, and has since been picked up by both Reuters and the Wall Street Journal. Today, the deals with Universal and Sony BMG appear to confirm the rumors, because YouTube is no longer at risk of being sued to death by the music industry. Ars Technica reports that Google and YouTube are expected to announce the buyout sometime this evening.
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