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Last January, YouTube users were very upset when they visited YouTube and noticed that all of the content owned by the Warner Brothers Music Group was no longer there. They quickly found out that the Warner Brothers Music Group had ordered YouTube to remove all of its content from the site. Well, these users will be happy this content is legally “making its way back to the world’s largest video portal: music videos for Madonna, Green Day, and Seal, among others, are now live on YouTube for the first time in nearly a year.” Unfortunately, having free access to this copyrighted content comes with some changes and requirements.
“The new videos will look a bit odd to anyone who has seen YouTube before – they’re all decked out with exclusive branding, including color backgrounds and large links to the artist’s products.” It turns out that Warner Brothers negotiated a deal with YouTube that lets them control all of the pages that feature content owned by the group. The deal lets Warner control the branding, advertising and items sold on the page, which means they can now potentially make revenue by branding the content they feature on the site.
So, what initiated this negotiation?
“At this point the branding isn’t awful, but it’s a concession YouTube surely wasn’t eager to make.”
The Warner Brother’s Music Group is also not known to let other’s access content they own free of charge. However, in the end it really comes down to what your users want. Consumer’s who use rely on YouTube to see music videos and stream content were extremely upset to find out that Warner Brother’s forced YouTube to remove the content from the site. However, YouTube was not the only party that looked bad. Even though Warner Brother Music Group is the reason the content was removed from YouTube, the music group is also negatively affected by their decision. In addition to losing the free advertising that YouTube provided, this decision upset a lot of music fans, which is not something the Music Industry should be doing right now.
As it turns out, YouTube and Warner Brother’s realized that they could work out a deal where they can both potentially benefit and also satisfy online music fans. In addition to satisfying its users, YouTube is also receiving a fraction of the revenue that comes in from Warner Brother’s content and advertising. Furthermore, Warner Brothers seems to changing their business model as well. Rather than not sharing their content with streaming sites like YouTube, they are trying out new ways to share their music and potentially profit from it as well. It is good to see both parties trying new business models in hope of finding a strategy that keeps everyone in business and happy. So now the question is, what do online music fans have to say about this? Do you mind accessing content online free of charge but have it be branded and focused on selling things?
It looks like we are going to have start getting used to this business model if we expect to be able to access content free of charge. However, as user’s we have nothing to lose. If you don’t want to deal with advertisements then you can always fall back on paying up. It is your call.
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