It's official: Google is about to ruin YouTube. A company exec told the Financial Times it will start blocking videos from record labels that refuse to sign licensing deals for its forthcoming premium service, YouTube Music Pass. This is the dumbest thing Google could do, and it threatens the very heart of what has always made YouTube so special.
Unfortunately, in an effort to build out the long-rumored YouTube Music Pass, Google's resorting to strong arm tactics that threaten to destroy YouTube. The Financial Times reports that Google has inked deals with the three major record label conglomerates (Sony, Warner, Universal), as will as a number of indies, accounting for 90 percent of the music industry.
The problem is Google's plans for the other 10 percent. The company's head of content Robert Kyncl told the FT that it plans to start blocking videos from indie labels that haven't signed licensing deals "in a matter of days." The FT says that these labels include XL Recordings and Domino Records, whose rosters include Adele, Animal Collective, Arctic Monkeys, and loads of other popular artists. In a statement to Gizmodo, Google confirmed the FT story as well as its intentions to launch a subscription-based service.
Some labels are refusing to sign up because they say they're getting a raw deal from Google. They say that while the major labels have negotiated lucrative contracts, Google is offering indies comparatively bad terms. It's their right to say they don't want to sign up if they don't like the deal Google is offering them. In response, Google is drawing a line in the sand: If your label won't sign on to Google's crappy licensing deal for a new streaming service, you can't host videos on YouTube at all.
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