YouTube has joined the ranks of Amazon – and possibly Apple – in preparing a subscription music service. Unfortunately for small record labels this could mean having their videos removed if they don’t sign up to a new set of terms and conditions.
According to a report in the Guardian, the website will begin trialling the new service later this week for a proper launch at the end of the year. Google already has a streaming music service available through the Play app store but with YouTube one of the main outlets for music on the Internet it makes sense to adopt a strategy for monetising commercial content uploaded for free.
Under the new music service – expected to be called YouTube Music Pass – users will either pay a subscription to watch as much music as they like or put up with advertising before clips.
The problem independent labels have with is that they say they have not been offered the same terms as major labels Sony, Universal and Warner and would not be participating. YouTube has fired back saying it would remove videos from labels that haven’t signed up.
Bands deciding to absent themselves from streaming audio services is not a new phenomenon. Thom Yorke of Radiohead decided to pull all his music from Spotify over the small royalties paid to artists. YouTube’s decision seems to be the first where labels have been ordered to join or have their artists vanish from one of the most used websites on the Internet.
The move has been criticised by licensing agency Merlin, which looks after royalties for independent artists. Merlin estimates that independent labels account have a market share of 32.6% in music sales and streams.
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