Silicon Valley Watcher - Former FT journalist Tom Foremski reporting from the intersection of technology and media

Warner content moves to YouTube

Posted by Richard Koman - September 18, 2006

By Richard Koman for SiliconValleyWatcher

Warner Bros cut a deal with YouTube to distribute and license copyrighted videos and music on the site. The companies are negotiating to strike a distribution deal, too, AP reports.

The deal includes the ability for YouTube users to include WB content in their own home-made videos. That's a pretty major deal for mashup culture.

"The Warner deal is one more piece of evidence that the record labels are comprehending the value of free music distribution," [industry market researcher Phil] Leigh said. "Instead of insisting on being paid every time, they're realizing they can use the Internet to popularize music and stimulate demand for both CD and digital downloads."

It's all in the context of copyright. But with Warner taking the lead on being proactive about online distribution, the rest of the industry may fall into line. Analyst Steve Lidberg:

The labels still want to be paid each time. What's changed is that they've found new monetization models where they can get paid. It's a new revenue source for Warner that they weren't getting paid from before. ... I'd expect this to be the foundation by which YouTube could have other discussions with the major labels in the marketplace.

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