Warner Music and YouTube have signed a new licensing agreement that will see the return of the record label’s music videos to the video-sharing site, after an attempt to renew a pre-existing agreement late last year failed and forced Google to remove all Warner Music-owned videos.
The videos are said to be returning by the end of the year, at the earliest.
The agreement will give more control to Warner, including the right to sell its own advertising to its “enhanced” channels devoted to its artists, as well on any user uploaded clip that uses any song belonging to one of its artists. The ad revenue made by Warner will be shared by YouTube, with Warner keeping most of that cash.
This agreement is similar to the latest licensing agreement made by Universal Music and YouTube, which introduced this new formula of ad sharing, with a notable exception – it is not creating a standalone website, unlike Universal. Under the new agreement with Universal Music, YouTube will become a partner to build a new music video sharing site VEVO.
However, while reports say this could jeopardise VEVO, there are rumours now that Warner is currently in talks of partnering with the site. Currently, Warner and EMI are the two labels who have not signed a deal with the site, with Sony Music joining in June this year. Both Sony and Universal make half of the “Big Four” record labels.
News of the new deal sent Warner’s share price up to US$5.62, up by 8.91 percent.