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YouTube has already inked lucrative licensing deals with Warner Music Group, Universal Music Group, and Sony Music Entertainment for the upcoming YouTube Music launch.\u00a0 But according to dozens of independent label groups now speaking out, YouTube has flatly refused to negotiate separate agreements with smaller rights owners, instead offering boilerplate agreements with far inferior terms. <\/p>\n
Beyond that, YouTube has now threatened to block the content of any independent label that declines to sign their non-negotiable contracts.
The following is a statement sent to Digital Music News this morning by WIN, a global independent label organization.\u00a0 The group initially threatened YouTube with a massive content boycott, but are now back at the negotiating table.<\/p>\n
_________________________________________<\/p>\n
YOUTUBE ISSUES CONTENT BLOCKING THREATS TO INDEPENDENT LABELS
WIN Raises Concerns About New Music Streaming Agreements
\u201cLONDON, MAY 21, 2014 \u2013 The Worldwide Independent Network (WIN), the organisation that represents the interests of the global independent music community has responded to news that YouTube intends to block the content of members who do not sign a new music streaming agreement describing it as \u2018unnecessary and indefensible\u2019<\/p>\n
WIN was formed in 2006 to represent the global independent industry, which boasts the second largest global market share after Universal.<\/p>\n
As reported by several news sources, YouTube is expected to launch a new music streaming service. The service has apparently negotiated separate agreements with the three major labels \u2013 Sony, Warner and Universal \u2013 but according to WIN\u2019s trade association colleagues has yet to reach any substantive agreement.<\/p>\n
At a time when independent music companies are increasing their global market share WIN has raised major concerns about YouTube\u2019s recent policy of approaching independent labels directly with a template contract and an explicit threat that their content will be blocked on the platform if not signed.<\/p>\n
According to WIN members, the contracts currently on offer to independent labels from YouTube are on highly unfavourable, and non-negotiable terms, and undervalue existing rates in the marketplace from existing music streaming partners such as Spotify, Rdio, Deezer and others.
Alison Wenham, CEO of WIN and Chairman of AIM (Association of Independent Music, UK), comments:<\/p>\n
\u201cOur members are small businesses who rely on a variety of income streams to invest in new talent,\u201d says\u00a0\u00a0 \u201cThey are being told by one of the largest companies in the world to accept terms that are out of step with the marketplace for streaming.\u00a0 This is not a fair way to do business.\u00a0 WIN questions any actions by any organization that would seek to injure and punish innocent labels and musicians \u2014 and their innocent fans\u2014 in order to pursue its ambitions.\u00a0 We believe, as such, 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.\u201d<\/p>\n
The international independent music trade associations call upon YouTube on behalf of their members to work with them towards an agreement that is fair and equitable for all independent labels.\u00a0 This has uncomfortable echoes of similar behaviour by MTV ten years ago, who chose initially to take a similar approach in undervaluing the independent sector, but who subsequently concluded a deal on fair terms, which lasts to this day.<\/p>\n
It is for every company to determine their own commercial arrangements, but it is in no one\u2019s interests to see independent artists being undervalued in the digital marketplace.\u201d<\/p>\n
Other organisations and WIN members from around the world also joined calls for YouTube to re-consider its position.\u00a0 Statements of support have so far been received from organisations in the following countries:<\/p>\n
\u2022Australia
\u2022Austria
\u2022Brazil
\u2022Canada
\u2022Denmark
\u2022Finland
\u2022France
\u2022Germany
\u2022Netherlands
\u2022New Zealand
\u2022Portugal
\u2022Spain
\u2022Sweden
\u2022South Korea
\u2022UK
\u2022USA
\u2022Vietnam
\u201cThe proper functioning of the digital market is essential and the EU takes trading practices like these seriously because they destroy competition and innovation. Rather than moving from the \u2018disrupter\u2019 to the \u2018destroyer\u2019, the real challenge for Google should be to use its muscle to develop a disruptive remuneration system which recognises that 80% of all new releases, which are so important in YouTube\u2019s offer, are generated by independents.\u201d<\/p>\n
Helen Smith, Executive Chairman \u2013 Impala, Europe<\/p>\n
\u201cIt is unfortunate that a service like YouTube with a worldwide scope appears not to be interested in treating all copyright owner creators equally.\u00a0 This has an effect not just on A2IM\u2019s label members but also upon their artists and the consumer fans of our artists who will lose this form of access to our music.\u00a0 We hope that we can continue discussions with YouTube and ultimately restore and grow our relationship with this very important service.\u201d<\/p>\n
Rich Bengloff, President \u2013 American Association of Independent Music<\/p>\n
\u201cWe are disappointed with reports of YouTube not negotiating in good faith with independent music labels. We urge YouTube to reconsider its approach, and recognize that independent labels deserve to be treated with more respect.\u00a0 It is in everyone\u2019s best interests for music service providers like YouTube to work with the independent music community to negotiate a deal that is fair, equitable and respectful for all parties involved.\u201d<\/p>\n
Stuart Johnston \u2013 President CIMA, Canada<\/p>\n
\u201cThe independent sector has struggled for decades to have a fair market in which to work. There is no reason for us to, at this point, give to one player privileges that could jeopardize the market health as a whole.\u00a0 This pressure over the labels is insane and will lead nowhere, but to a delay in service launch.\u201d<\/p>\n
Luciana Pegorer \u2013 Managing Director ABMI, Brazil<\/p>\n
\u201cWe are extremely disappointed at YouTube\u2019s decision to use its market power to unilaterally enforce inferior commercial terms on the independent sector.\u00a0 For a company that has arranged its structure to pay minimal tax in our market, to now see YouTube\u2019s treatment of independent Australian labels who provide so much of its Australian music content so as to further improve their profitability at the sake of local content creators is deeply concerning.\u201d<\/p>\n
David Vodicka \u2013 AIR, Australia<\/p>\n
\u201cIt seems obvious that a streaming\/subscription service from YouTube is imminent and if the offering does not house the indie sector YouTube is plainly making the claim that this sector holds no value for them.\u00a0 In an age where New Zealand artists spring from the very independent ethos to achieve worldwide acclaim it makes no sense for YouTube to pursue the tactic of exclusion.\u201d<\/p>\n
Scott Muir \u2013 Deputy Chair of Independent Music, New Zealand<\/p>\n
\u201cIt is regrettable and unacceptable that YouTube tends to abuse its dominant position as a digital channel to impose unfair conditions on independent labels. Further, the threat of blocking or removing their content would have the negative effect of preventing consumers from enjoying a substantial part of the whole music catalogue.\u201d<\/p>\n
J\u00e9rome Roger \u2013 General Manager of UPFI , France<\/p>\n
\u201cWe are regretful to hear of pressure being put by YouTube on suppliers who have so far chosen not to sign up to their current contract offer.\u00a0 We may adore new, disruptive business models, but even more we love appropriate, fair, social and artist-valuing remuneration.\u00a0 So dear YouTube \u2013 we\u2019d appeal for a move towards a more co-operative understanding and negotiation, working together, not against each other.\u201d<\/p>\n
Joerg Heidemann \u2013 VUT, Germany<\/p>\n
\u201cIt is deeply disturbing that YouTube so far has not even tried to negotiate deals for their upcoming streaming service with independent labels from Austria. We vehemently protest against YouTube\u2019s policy that is trying to squeeze small labels into deals that are discriminatory.\u00a0 YouTube as one of the world\u2019s leading online services with a significant market power is obliged to offer deals to all interested labels around the world on equal terms and conditions.\u201d<\/p>\n
Alexander Hirschenhauser \u2013 VTMOE, Austria<\/p>\n
\u201cThe AMAEI, the Portuguese Independent Music Association, hereby asserts its position that any service that utilizes music that takes a differentiated approach between major label vs. independent content is not only on the wrong ethical path \u2013 a file is a file, a song is a song \u2013 but also on the wrong side of technological progress and development.\u00a0 It is the vibrant independent music community that drives creativity and growth, and any service that leaves out the independents will ultimately lose out on appealing to an ever-increasing audience.\u00a0 Independent music is the life-blood of the internet.\u00a0 Don\u2019t spill it.\u201d<\/p>\n
Nuno Saraiva \u2013 Vice President of AMAEI, Portugal<\/p>\n
\u201cWe want YouTube to reconsider its position in this matter and to work with the independent music sector to agree a fair resolution to this issue. We value and respect what YouTube has to offer to the digital music marketplace and would like that appreciation reciprocated by them so that we can all move forward towards a mutually beneficial solution.\u201d<\/p>\n
Kees van Weijen \u2013 STOMP, Netherlands<\/p>\n
\u201cDUP represents the Danish independent record labels and we\u2019re appalled that YouTube has issued these individual ultimatums.\u00a0 YouTube\u2019s self-proclaimed role as a \u2018a distribution platform for original content creators and advertisers large and small\u2019 is little more than hollow branding of a company that in reality is losing touch with the very creators and audience that have bloated the size of the platform into the stratosphere over the years. For a global mastodon like YouTube to further undermine the value of music to a level well below existing streaming services can spread like a virus and destroy the independent recording industry, labels and artists alike.\u201d<\/p>\n
Kristoffer Rom \u2013 Co-Chairman of DUP, Denmark<\/p>\n
\u201cThe Safe Harbour provision of the DMCA dates from 1998.\u00a0 It\u2019s being used to deprive culture workers and creators of their right to withdraw their labour and when you can\u2019t do that \u2013 you\u2019re a slave.\u00a0 Spain\u2019s parliament is considering a law which begins to adapt copyright for creators to the new landscape.\u00a0 We couldn\u2019t hope for a better illustration of the problems that need solving than Google\u2019s behaviour at this negotiating table.\u00a0 It\u2019s a reminder that they need to be shown how not to be evil.\u201d<\/p>\n
Mark Kitkatt \u2013 UFI, Spain<\/p>\n
\u201cWe find it very odd that YouTube has not contacted Finnish independent labels to negotiate deals for its streaming service, and we object to any proposal by a dominant platform such as Youtube which excludes or unfairly discriminates against independent right holders in Finland.\u201d<\/p>\n
Tapio Korjus, Chairman IndieCo, Finland<\/p>\n
\u201cIndependent labels, organizations and even artists themselves are incubators for the new talent of the world that drive creativity and what\u2019s \u2018next\u2019 in music. It is through social media platforms such as YouTube that these creatives have the ability to not only survive as artists, but to thrive beyond areas that major labels do not support.\u00a0 By hindering the opportunities for independent artists to be discovered and making unexplored areas of creativity unsearchable, YouTube will contradict its own rule of ethics if it executes its intended plans.\u201d<\/p>\n
Mimi Nguyen \u2013 Lang Van, Vietnam<\/p>\n
\u201cWe, LIAK (Record label industry association of Korea) fully support WIN\u2019s position on YouTube\u2019s recent policy of discrimination against the independent music sector. Independent music needs to receive fair treatment from major global platforms for healthy diversity of music in the world.\u201d<\/p>\n
Chan Kim \u2013 Chairman, LIAK South Korea<\/p>\n
\u2013 END OF STATEMENT \u2013<\/p>\n
Source: Digital Music News<\/p>\n","protected":false},"excerpt":{"rendered":"
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