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YouTube has come under-fire due to a lack of revenue they pay record companies generated by advertising.
This issue isn’t anything new as major record companies always seem to complain about this issue, which some can say that they do not want a platform where anyone can produce, record and upload their own music.
Any form of competition is seen as a threat by major corporations and the music industry is just as ruthless in this department.
One angle from these ‘majors’ is the fact that they seem or unwilling to look at ways of slim-lining their respective businesses.
Look at Capitol Records headquarters building in Los Angeles, California, in the United States of America, how much does that cost to run? Without even thinking of the employees overheads.
We saw EMI that went out of business, disembowelled and sold-off to the ‘majors’ that took several years to complete over monopoly fears; and the wealth of music history they obtained, let alone the wealth of the music catalogue they all snatched-up.
The ‘majors’ get the most revenue, so if the independent record companies complained this would be more of a legitimate argument.
YouTube has defended themselves and rightly so, with the following statement:
“YouTube enables creators to create, produce and share their creative content in over 80 countries around the world. The number of creators earning $100,000 per year has increased by 50% year over year.
YouTube has paid $3 billion to the music industry to date and the Content ID system makes sure that creators get revenue if ‘others’ upload their creative content.
There are creative management controls in place so content creators have a number of tools to control their content within the YouTube digital platform
Furthermore YouTube has generated a further $2 billion to content ‘other’ than music”
The fact is that YouTube is a valuable digital platform for a generation who just simply want to create content, and would have no other means to share their content with the rest of world.
The argument that Alphabet the owners of Google and YouTube should pay more, even if advertising revenues fall will eventually lead to the collapse of such a digital platform.
The world changes so the ‘majors’ have to look at how they spend their revenue and whether they pay their artists the right amount of money first, before they question how much YouTube and others pay.
Vevo exclusively promote the music of these ‘majors’ thus creating a monopoly where they benefit, rather than on YouTube where ‘every’ content creator has a chance.
However in a recent development Vevo is shutting-down and using their YouTube/Vevo channel to upload their respective content from the owners of Vevo - Universal Music Group, Sony Music Entertainment and Warner Music Group.
YouTube accused of underpaying record companies for music content
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“YouTube is a valuable tool for ‘every’ content creator across the world”