Plans under discussion include: a partnership with Hulu, the online television and film joint venture between News Corp and NBC Universal; the creation of a premium service on YouTube, Google’s video sharing site; or, a standalone venture between some or all of the four largest recorded music groups.
Industry members had hailed deals struck with YouTube last year as a new way of driving profits from the popularity of professional music videos and the soundtracks to amateur efforts on such user generated content sites.
However, some are now questioning whether either side has made much money from arrangements which require YouTube to share advertising revenues and, in many cases, pay a few tenths of a cent to the music company each time a video is streamed, regardless of how much advertising is sold.
Universal Music, the industry leader, has said that it makes “tens of millions of dollars” from YouTube.
Warner Music failed last week to agree a new deal with the site, however, saying it was not being adequately compensated and demanding that the site take down its artists’ videos and amateur content using songs from its publishing arm such as “Happy Birthday To You”.
Representatives of two music companies, who would not be named, said they were in discussions with Hulu, adding that no partnership announcement was imminent but that the site appeared to be the favoured partner. “If it happens at all it will be with Hulu,” one said.
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