WMG Inks Deals With YouTube And Legal P2P Service Qtrax
September 18, 2006 at 11:12 AM (PT)
While the UNIVERSAL MUSIC GROUP is unhappy with YOUTUBE and MYSPACE (NET NEWS 9/14), WARNER MUSIC GROUP (WMG) has no such qualms, inking a deal with YOUTUBE to make WMG videos legally available for the first time on www.YouTube.com.
YOUTUBE and WMG said the deal would enable both parties to generate and share revenue created by advertising, which will be featured around the videos. YOUTUBE said it would use a new advanced content identification and royalty reporting system to identify the music videos and help manage payment to the record labels.
UPDATE: WMG didn't stop at YOUTUBE, though, announcing an additional content deal with BRILLIANT TECHNOLOGIES CORP. to offer WMG music for streaming and limited download on BRILLIANT's legal, ad-supported peer-to-peer (P2P) music network, QTRAX.
WMG SVP/Strategy and Product Development GEORGE WHITE said, "The QTRAX service represents an innovative business model, one that offers our artists another way to reach fans using the potential of peer-to-peer technology while ensuring they are fairly compensated for the use of their work."