Google, YouTube, Sony, BMG, and Universal Tie a Knot
So, news that Google bought YouTube for $1.65 billion in stock seems to be all over the place. Not bad for a 19-month-old company, ay?
Also interesting, is the series of announcements concerning the major record labels and GooTube (or is it Yougle?):
- Universal Music Group And Youtube Forge Strategic Partnership
- Google And Warner Music Group Announce Agreement To Offer Google Video Users WMG’s Music Video Content
- Google Signs Agreement With SONY BMG MUSIC ENTERTAINMENT To Give Users Access To Expansive Catalog Of Music Videos
The announcements differ slightly, but all touch on several interesting deals:
- LABEL CONTENT: The labels have agreed to allow Google/YouTube to host music videos, artist interviews, "behind-the-scenes" footage and/or other artist-related content for public viewing. Universal is contributing music only, while Sony and Warner are contributing both audio and music.
- USER-GENERATED CONTENT: Users will be able to use the label content in new videos they create and upload to YouTube. I.e. artist exposure.
- MONETIZATION: The content will be monetized, splitting ad revenue between labels and ‘Tube. The content will also be monetized through web publishers’ websites that place content on their sites; that revenue will be split between labels, ‘Tube, and the web publishers.
Very interesting. It’s a little sad to think that indie and unsigned bands will now find it harder to get attention in a space that’s cluttered with big name content, but as far as the labels are concerned, it’s a smart move. They’re simultaneously monetizing music and videos while generating increased exposure for them, some of which are rotting away in an archive somewhere. Add to that the fact that users are no longer hindered by legal threats of using copyrighted content, and are actually rewarded when such content is viewed on their websites…it could lead to a mashup explosion. Smart, smart, smart.
Comments
For anyone that’s interested, here’s Om’s post that Taylor mentions above:
http://polls.gigaom.com/2006/10/09/goobed/
Yep, I agree, most of the press passed over the content provider deals but I’m guessing they were pretty key to getting the Googl-YouTube deal done. See Gigaom.com for details…