Just yesterday I wrote about Universal earning an estimated $100 million in 2008 from online music videos. The other major labels are getting big checks too with 80% of the money coming from YouTube.Now comes word that YouTube is already in negotiations with the four major label groups and telling them not to count on those big checks for long. The new deals being offer by YouTube and parent Google, which take effect sometime next year, will not add nearly as much cash to label coffers.
Will the labels balk and not re-sign with YouTube? Don't count on it. With the video site becoming a top choice for music discovery, the labels need YouTube more than YouTube needs them.
