Latest news has stirred a new controversy; YouTube has announced that in just few days independent musicians are going to disappear from YouTube. YouTube which is a Google owned largest online video service, that in a matter of days they are going to drop all the independent music labels that are not going to sign up for its forthcoming subscription music service. YouTube is going to begin its test of new service shortly, which is going to change they way users used to watch and listen to their favorite music videos and also download them on their computers and mobiles.
Robert Kyncl, who is the head of YouTube content and business operations talked to a newspaper and stated that this service which was earlier rumored to be called as YouTube Music pass is about to launch later in 2013. He confirmed that YouTube is going to block all the videos that are of those labels who do not sign the license deal for their new premium tier. This has become very controversial for indie labels and a trade body WIN has already filed a complaint in the European commission about YouTube negotiating strategy.
Kyncl claimed that they are hopeful of achieving 100 % success rate in their endeavor, however they do understand it might not be very easy to achieve and therefore he said that it is the responsibility of them to their users and the industry to launch an augmented music experiences. He mentioned that YouTube has already signed up 90% of the music labels that represent the music industry. However, the indie labels are more likely to disagree on this notion. The licensing agency Merlin estimated that independent on a whole account for about 32.6% market share of the recorded music industry’s streams and sales. The WIN’s CEO Alison Wenham was very bold in her response.
Alison stated that they have suffered a simple but very disastrous error of decision in wrongly reading the market. Alison contended that YouTube has itself setup for a coming failure and only a fraction of the indie labels will agree to go and sign up with YouTube on their terms and conditions. Alsion further claimed that they have numerous times tried to convince the YouTube to understand the importance of independent music labels for any online streaming websites. Music fans are in desire of listening to each and every style of music from all the corners of world. Therefore banning indie labels will have catastrophic effects on the audiences of YouTube.
YouTube attracts about more than 1 billion monthly viewers from across the globe and music is the biggest category of YouTube. The upcoming premium subscription of music tier is going to make YouTube compete with other giants such as Beats by apple and Google Play Music All access. Independent labels have always complained that they deserve some more respect and honor from all these digital musical services, and so they have set up Merlin to strike a deal between them and YouTube.