Indie Labels Ink Licensing Deal With YouTube

Indies Get Paid

A consortium of small independent labels has consummated a licensing agreement with YOUTUBE that will allow them to collect advertising revenue when their songs are used in videos on the site, the NEW YORK TIMES reports. The deal was announced by YOUTUBE and MERLIN, the consortium that represents about 1,400 independent labels around the world. Terms of the deal were not disclosed.

The indies initially felt snubbed when YOUTUBE was sold to GOOGLE, which quickly pacted with the majors for $50 million each,  Now they will finally take part in a revenue source through its CONTENT ID system, which recognizes the music used in any video. Whether a professional film or a wedding party with the bride’s favorite song playing in the background, YOUTUBE can split some of the ad revenue with the song’s copyright owners.

The MERLIN deal comes a few days after YOUTUBE unveiled a set of features to help do-it-yourself musicians sell merchandise, concert tickets and other goods through the site.

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