Sony BMG, Universal, CBS Strike Deals With YouTube
October 9, 2006 at 10:25 AM (PT)
Both SONY BMG and UNIVERSAL MUSIC GROUP have signed deals offering YOUTUBE and its users access to thousands of videos on YOUTUBE from SONY BMG's and UMG's extensive artist rosters. Both companies will allow YOUTUBE users to incorporate music from their recorded music catalog into the videos they create and upload onto YOUTUBE.
UMG and its artists will be compensated not just for UMG produced videos but also for the unique, user-created content that incorporates UMG music. SONY BMG and YOUTUBE will share revenue from advertising on all SONY BMG music videos that incorporate audio and audiovisual works from the SONY BMG library.
"With its trademark blend of music, videos and fan generated content, the YOUTUBE environment represents a fascinating new way to deepen the relationship between our artists and their fans," commented SONY BMG MUSIC ENTERTAINMENT Pres./Global Digital Business THOMAS HESSE. "We are pleased to be working with YOUTUBE on this new initiative that respects the rights of artists and copyright holders, while at the same time making our content commercially available to a broader audience than even before."
UNIVERSAL Chairman & CEO DOUG MORRIS said, "UNIVERSAL is committed to finding innovative ways to distribute our artists' works, and today's agreement with YOUTUBE furthers that strategy by helping transform this new user-generated content culture into a mutually beneficial business opportunity. We pride ourselves in empowering new business models that create new revenue streams for content creators. YOUTUBE is providing a new and exciting opportunity for music lovers around the world to interact with our content, while at the same time recognizing the intrinsic value of the content that is so important to the user experience."
And CBS CORP. has also inked a content deal with YOUTUBE, providing short-form video for a CBS "channel" for the website. Content will include news, show previews, clips from "SURVIVOR" and other shows, and sports clips. The deal also includes the right for CBS to test new technology to find and remove copyrighted material or to leave the content on the site and share ad revenue.