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Warner Music Bails on YouTube
Warner Music Group can't catch a break. While most music labels are trying to find any revenue they can, Warner just pulled out of a contract with YouTube.
Considering how many people go to YouTube to find new music, this move is pretty drastic, considering that it's almost impossible to find music videos on MTV or VH1 these days.
Warner was the first big label to sign onto YouTube back in 2006. Way, way back then, no one could have predicted how huge YouTube would be, or that Google would scoop it up. This deal expired a few months ago, and it probably wasn't a great deal -- not nearly as lucrative as the deals with other labels that signed with Google was already in the mix.
They're fighting over half a penny.
Warner's old deal had them paying 0.5 cents for streaming rights. Labels can get paid per stream or paid a share of advertising revenue. Other companies get more money than Warner.
Get this: Warner bargained on YouTube becoming an advertising giant instead of just building up more viewers. Imagine that - wanting to be more entertaining than making money. Interesting. —Leslie Shapiro
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