Google’s YouTube to block indie labels who don’t sign up for its upcoming subscription music service

“Independent artists could disappear from YouTube ‘in a matter of days’ after the Google video service confirmed it was dropping content from independent labels that have not signed up for its upcoming subscription music service,” Stuart Dredge and Dominic Rushe report for The Guardian. “YouTube is about to begin testing the new service – which will charge people to watch and listen to music without ads, and download songs to their mobile devices – within the next few days, initially within Google. The company’s head of content and business operations, Robert Kyncl, told the Financial Times that the service – previously rumoured to be called YouTube Music Pass – will launch more widely later in the year.”

“His confirmation that YouTube will block videos from labels that do not sign licensing deals for the new premium tier will be hugely controversial among indie labels, with trade body WIN already filing a complaint to the European Commission about its negotiating strategy,” Dredge and Rushe report. “Contacted by The Guardian following his comments, WIN’s chief executive Alison Wenham was blunt in her response. ‘They have suffered a simple but catastrophic error of judgement in misreading the market,’ said Wenham, who had organised a press conference earlier in the month to protest at YouTube’s plans. Wenham said YouTube was “setting itself up for failure” and only a small number of independent labels would agree to its terms.”

“WIN claims that the company has signed lucrative licensing deals with major labels Universal, Warner and Sony, while demanding that independent labels sign up to inferior terms or face having their videos blocked from YouTube’s free service,” Dredge and Rushe report. “Wenham’s criticism echoes a claim made at the event by musician Billy Bragg, who said ‘I don’t know why they’ve opened this hornet’s nest right now, apart from corporate hubris. I don’t think they realise what a stupid thing they’ve done.'”

Read more in the full article here.

MacDailyNews Note: Well, now, Google’s got themselves a fine can of worms, haven’t they?

More info: WIN’s YouTube statement.

[Thanks to MacDailyNews Reader “bpondo” for the heads up.]

51 Comments

    1. My thoughts exactly! Amazon and Google are the new Microsofts of the 21st century, ruthlessly and (IMO) illegally leveraging their market power to increase their stranglehold in their respective areas. The DOJ must be asleep.

      The good news is that Google paid a bundle for YouTube, apparently not recognizing that YouTube is only as good as its content and is valued primarily because of its free market roots. Google is messing with both of those aspects in its zeal to monetize its acquisition.

      How hard would it be for Apple or someone else to start a competitive service? Anyone with a big server farm and some software savvy could do it, IMO. That puts GoogleTube on pretty shaky ground.

      1. The DOJ is not asleep. The phone call from the whitehouse has not yet been made, and as long as Amazon and Google continue to support the present administration financially and in kind, it will never come. The DOJ is not asleep. It’s been bought.

        1. Aw, now that’s mighty cynical of you, Zeke! The DoJ received no money — heck, that’d leave a trail! I suspect they were told their Google search history would be delivered by Amazon aerial drone… and they were quick to realize that when Homeland Security intercepted those drones their search histories would be leaked to press within minutes. 🙂

        2. You had to bring the Adminstration into this, as if the President has some agenda against Apple. I don’t believe that.

          Why don’t you run for POTUS and then attempt to vindictively micromanage every department like you and others seem to believe represents reality. It does not make any sense. Somehow W was not responsible for anything and O is responsible for everything.

        3. But… But… I think you are right!!! O is responsible for everything and W for nothing. W as a complete moron that didn’t know anything that was happening around him. .. If I follow the logic, O would be an extremely aware and capable guy. You might not like what he does… But that’s the conclusion.

        4. The president does not have an agenda against Apple. His political contributors do. He’s supported by Google and Amazon both financially and with in-kind donations of server time and space, and labor.

          You seem to think I’m a typical partisan. I’m not. I think Bush was as bad as Obama, but more out of ignorance than intention. Obama is a smarter guy, and therefor I have to say that it’s more intentional. It’s been pretty much established as fact that Obama’s IRS has harassed opposition groups, that Obama’s DOJ and AG have allowed illegal weapons purchases to be funneled into the hands of Mexican drug cartels, and that Obama’s state department stood by while Americans were killed in Benghazi in order to preserve the illusion that Obama has defeated Al-Qaeda.

          It’s a small step from that to putting some muscle on Apple through the DOJ on behalf of Amazon and Google. This was standard OP on Chicago and the same folks are running his administration now.

      1. From Wikipedia –

        “Don’t be evil” is the informal corporate motto (or slogan) of Google. . . they (the phrays “Don’t be evil”) were included in the prospectus (on Form S-1) of Google’s 2004 IPO (a letter from Google’s founders, later called the “‘Don’t Be Evil’ manifesto”) . . . The motto is sometimes incorrectly stated as Do no evil.

  1. Sounds like something Apple would do….

    They seriously have their heads up their asses if they think this is going to fly. They should not be using their position with YouTube to dictate terms.

    1. It kind of is. It’s presently the first article shown “below the fold” (an old newspaper term): It shows after you click the “More Technology News” link. But the article was posted “22 minutes ago” while all of the stories “above the fold” are older than that, some by hours, some by minutes – the order is difficult to figure out.

  2. This is typical of a too big organization that thinks it can control the world. Instead what will happen is when people like me go to YouTube to hear some music for a group we stumbled across and the music isn’t there, we will eventually quit going to YouTube for anything.

    Google is making Microsoft look like a good company. Wait, what am I saying. Both companies suck.

  3. Let’s fly away to the other side…

    Let’s fly away to the other side,
    Wipe the slate clean for the umpteenth time.
    Start in again on a life of crime,
    On the other side, other side.

    Let’s find a place on the other side,
    A cozy shack full of turpentine.
    We’ll live on bread crusts and lemon rind…
    To the other side, other side…

    On this side, the leaves are changing colors…
    On this side, the grass is turning brown…
    You make me go to the cellar,
    You’re like a bell turned upside down.

    Let’s build a gate to the other side,
    Then hesitate to carry the bride.
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    Other side, other side…

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    Your side is turning toolbox brown.
    Our side wants to call them over,
    And keep you from running out of bounds.

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    This side, that side, let’s count down!

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    Hop on a sled and go for a ride.
    Let the trail of bread crumbs be our guide,
    To the other side, other side.

    Other side, other side, other side, other side…

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