YouTube hit the headlines across the world this week with the worst kept secret since the wedding of Kanye & Kim, confirming plans to launch a long-awaited music-subscription service, but some independent labels are refusing to sign on the online video company contracts. YouTube is using its market share push & flatten some smaller labels – mostly independents.
For some of you out there wondering why would this happen – simple maths?
Music + Videos = Money
The story of YouTube is an interesting and very profitable one. Started by three young entrepreneurs in 2005 from a garage, it was born during the revolution of the internet. After an initial angel investment of US$3.5million they were turning over US$15million profit per month in advertising alone. Google announced on October 9, 2006, for US$1.65 billion in stock it would purchase YouTube.
Effectively all of these figures mean that if you are an independent label and you don’t sign with Google, they will ban your music from the site! Names like Adele, Artic Monkeys a list of artists signed to smaller labels could be history! This is where more maths comes in; don’t sign the contract & pay the YouTube lord = don’t be discovered – well possibly not in Adele & Artic Monkeys case, but you get the picture. Hours and hours of emerging bands playing their cover songs, countless crucified Taylor Swift songs deleted. For you gamers that is the case as well! No more can we watch gameplay to get the tips from the best in the business on Skyrim – it now needs to have a voice over to stay on the screen.
The figures are astounding. Did you know that YouTube has over 60hours of video uploaded to it ever minute! In the time it has taken me to put this story together, that’s a week of video uploaded…………now how will that look with an Adele fav – Rollin in the Deep taken out of the backing track of the cat dressed up in doll clothes on a skateboard? See what I mean!
So to recap: Google bought YouTube in 2006. They now want to charge music label’s and us to use the service that has been free for the past nine years. Independent labels are resisting. Game play must have a voice over. The worst of it – how will names like Justin Bieber ever be discovered again! It’s an outrage!
MELINDA RANSOM