Indie Music Labels Call the Actions of YouTube 'Unnecessary and Indefensible'
As YouTube is to launch its new music streaming service, the company carries numerous deals with major and minor music labels. While the first ones, including Sony, Warner and Universal, seem to be OK with the terms of agreements, the latter, particularly WIN (Worldwide Independent Network), claim that YouTube attempts to force minor labels sign the contracts on unfavorable terms by approaching them directly and threatening to block their access to the video streaming platform.
The negotiations on the matter are still being held after almost a week of discussions between YouTube and Win and, according to Win, no progress has been made. Alison Wenham, chief executive of Win and chairman of the Association of Independent Music (UK), stated: “We believe that these actions are unnecessary and indefensible, not to mention commercially questionable and potentially damaging to YouTube itself, given the harm likely to result from this approach”. Win gave YouTube one day to reconsider the conditions that were proposed, but the titan gave no answer so far.
In response to the move, a YouTube spokesperson didn't say much: «We have successful deals in place with hundreds of independent and major labels around the world, however we don't comment on ongoing negotiations.» Whether YouTube has the right to dictate the rules on the music market is a good question to think over. Despite the fact that these actions undoubtedly undermine the value of music, YouTube's video platform is one of the most important sources of new fans for many individual music labels.
