YouTube Struggling To Get Deals Done
May 21, 2009 at 5:23 AM (PT)
While three of the four major record companies and many independent labels have deals in place with YOUTUBE, the GOOGLE-owned video service really is struggling to get deals done with the songwriter collecting societies, reports THE LONDON DAILY NEWS. "Following their very public falling out with PRS FOR MUSIC in the U.K., and with PRS counterparts GEMA in GERMANY, squabbles that have led to YOUTUBE pulling all premium music video content in those territories, news TODAY (5/21) of ongoing legal wranglings between the video service and one of the U.S.'s songwriter royalty bodies, ASCAP.
While YOUTUBE is yet to withdraw music videos from their U.S. service, some say the company has long since abandoned its original idea of being the "world's biggest video jukebox," preferring instead to power other people's services -- like UNIVERSAL MUSIC's in development video service VEVO -- and letting other people worry about premium ad sales.
"A U.S. judge has reportedly ordered YOUTUBE to pay $1.61 million in back royalties to ASCAP, and a further $70,000 per month moving forward, to pay songwriters allied to the collecting society whose work appears on the video website in the U.S. writes the paper. "It's a temporary settlement because the web firm and collecting society have failed to reach a blanket licensing agreement over the use of ASCAP's members' music on the video site, and the matter is now working its way through the courts, with a full hearing yet to take place.
"The ruling means ASCAP will receive some monies while legal action is ongoing. $1.61 million for back royalties is a lot more than what YOUTUBE had proposed they pay, though is about 13% of what the collecting society suggested they were due."