Record Labels Not Planning On Sharing YouTube Windfall With Musicians

from the it's-all-for-the-musicians,-huh? dept

Sure, YouTube might have a good legal defense to anyone who sued them for copyright infringement, but the lawsuits would still be pretty pricey. Not surprisingly, that was part of the sticking point in the negotiations between YouTube and Google before Google finally finally pulled the trigger. In order to make that issue go away, we already noted that YouTube did questionable deals with most of the major record labels the morning before they signed the Google deal -- effectively cutting them in on the deal. Now Mark Cuban is posting an email from an anonymous industry insider that provides a few more details while making the whole deal even more questionable. As the earlier article noted, YouTube was told to negotiate with effectively a blank check (signed by Google) with the record labels to get them to lay off YouTube for a while. But, here's where it gets interesting.
  • The deal was an investment, not a licensing agreement, meaning all that cash the labels got they don't actually need to share with the artists they always claim they're trying to protect. This was done on purpose.
  • While Google and YouTube have apparently put $500 million in escrow to deal with copyright lawsuits from smaller players, handing over cash to the labels came with a promise that the labels wouldn't sue YouTube for at least six months.
  • At the same time, they would sue other players in the space -- which we've already seen from Universal Music.
Add it all up, and you get the music labels effectively taking a bribe to cause trouble for Google/YouTube video competitors, ignoring YouTube to let it grow for a while, and pocketing all of the money without giving it back to the artists they supposedly represent. The claim is anonymous, but the pieces certainly fit together nicely. It would be nice to see an alternative explanation, as this whole thing reads pretty sleazy.

Reader Comments

Subscribe: RSS

View by: Time | Thread


  1. identicon
    steveking, 7 Jul 2008 @ 11:31pm

    YouTubeRobot.com today announces YouTube Robot 2.0, a tool that enables you to download video from YouTube.com onto your PC, convert it to various formats to watch it when you are on the road on mobile devices like mobile phone, iPod, iPhone, Pocket PC, PSP, or Zune.

    YouTube Robot allows you to search for videos using keywords or browse video by category, author, channel, language, tags, etc. When you find something noteworthy, you can preview the video right in YouTube Robot and then download it onto the hard disk drive. The speed, at which you will be downloading, is very high: up to 5 times faster than other software when you download a single file and up to 4 times faster when you download multiple files at a time.

    Manual download is not the only option with YouTube Robot. You may as well schedule the download and conversion tasks to be executed automatically, even when you are not around. Downloading is followed by conversion to the format of your choice and uploading videos to a mobile device (if needed). For example, you can plug in iPod, select the video, go to bed, and when you wake up next morning, your iPod will be ready to play new YouTube videos.

    Product page: ww w.youtuberobot.com
    Direct download link: ww w.youtuberobot.com/download/utuberobot.exe
    web-site: ww w.youtuberobot.com
    E-mail: support@youtuberobot.com

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here



Subscribe to the Techdirt Daily newsletter




Comment Options:

  • Use markdown. Use plain text.
  • Remember name/email/url (set a cookie)

Follow Techdirt
Special Affiliate Offer

Advertisement
Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Advertisement
Report this ad  |  Hide Techdirt ads
Recent Stories
Advertisement
Report this ad  |  Hide Techdirt ads

Close

Email This

This feature is only available to registered users. Register or sign in to use it.