What YouTube Could Learn from Record Companies

Don’t forget that Google faces EU charge over Android ‘abuse of dominance’ http://www.bbc.com/news/technology-36092441 Google doesn’t need any more bad publicity.

MUSIC • TECHNOLOGY • POLICY

Peter Mensch gave voice to what many in the music business believe as reported by the BBC:

“YouTube, they’re the devil,” [Peter Mensch] told a BBC Radio 4 documentary on the music business. “We don’t get paid at all.”

He said the site’s business model, in which artists make money by placing ads around their music, was unsustainable.

“If someone doesn’t do something about YouTube, we’re screwed,” he said. “It’s over. Someone turn off the lights.”

YouTube’s reaction?  It’s not them, it’s the labels, the “gatekeepers”.  YouTube pays high royalties for music, it’s that it’s not getting to the artists because it’s being siphoned off by “gatekeepers”.  According to YouTube’s Chief Business Officer–the Suit of Suits–Robert Kyncl:

“There are middle-men – whether it’s collection societies, publishers or labels – and what they do is they give advances and they want those recouped. So it’s really hard when there’s no…

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