YouTube to Block Indie Labels as Subscription Service Launches!

YouTube will remove music videos by artists such as Adele, Arctic Monkeys and Radiohead, because the independent labels to which they belong have refused to agree terms with the site.

Google, which owns YouTube, has been renegotiating contracts as it prepares to launch a music subscription service.

A spokesperson for the indie labels said YouTube was making a “grave error of commercial judgment”.

YouTube said it was bringing “new revenue streams” to the music industry.

We think it is wrong for YouTube to threaten to ostracise certain independents… because they are unwilling to surrender to a take it or leave it ultimatum”

Geoff Taylor Chief executive, BPI Speaking to the Financial Times, Robert Kyncl, YouTube’s head of content and business operations, said videos from independents could be blocked “in a matter of days,” if new licenses are not negotiated.

The three major record labels – Universal, Sony and Warner – have all agreed terms with the site, but smaller independents are holding out.

‘Lack of respect’ Some independents say they are being offered “highly unfavourable terms”. Radiohead guitarist Ed O’Brien accused Google of trying to “strong-arm” labels into accepting low fees.

Alison Wenham, who runs the Worldwide Independent Network , which represents the independent music community said YouTube is “making a grave error of commercial judgment in misreading the market”.

“We have tried and will continue to try to help YouTube understand just how important independent music is to any streaming service and why it should be valued accordingly,” she added.

“By not giving their subscribers access to independent music YouTube is setting itself up for failure… The vast majority of independent labels around the world are disappointed at the lack of respect and understanding shown by YouTube.”

BPI, the organisation which represents British record companies – including the three major labels – said it was wrong for YouTube, which is the dominant online video platform, to “threaten to ostracise certain independents”.

Chief executive Geoff Taylor said the move would end up “denying fans the opportunity to hear their music, and labels and artists the chance to earn a living from it – because they are unwilling to surrender to a take it or leave it ultimatum.”