YouTube accused of trying to strong-arm indie labels into poor deals
A threat to remove Adele and the Arctic Monkeys from YouTube should be investigated by the European Commission, according to the independent record labels they are signed to.
The desperate plea for intervention – supported by the likes of Billy Bragg and Radiohead's guitarist Ed O'Brien – comes amid an escalating row about the fees that YouTube is prepared to pay artists signed to independents.
Bragg accused the Google-owned site of "shooting itself in the foot" by trying to strong-arm indies into deals on low rates, in a dispute that has taken on an extra edge because YouTube wants to launch an online service to compete with Spotify.
"They are in danger of launching a streaming service that lacks the innovative and cutting edge sounds that independent artists bring. Would music fans be willing to pay for such an inferior product? I don't think so," Bragg said.
The Worldwide Independent Network (WIN), a trade body representing independent labels worldwide, is so frustrated with YouTube's negotiating stance that it will lodge a formal complaint on Wednesday with the European Commission over the site's tactics.
WIN represents 850 labels in the UK including Beggars Group – owner of labels including XL Recordings, which is home to Adele and The White Stripes – and Domino, which has signed Franz Ferdinand as well as Arctic Monkeys.
Three large music companies dominate the industry – Universal, Warner Music and Sony Music, known as the majors. In an attempt the match their clout in negotiations with digital media giants such as YouTube, the remaining independent labels negotiate collectively, but often complain that they struggle for the best commercial terms.
They say YouTube is trying to cut out Merlin, the body that represents them in rights deals, and is instead making direct approaches to individual independent labels with a "non-negotiable" contract for its proposed streaming service.
The labels say they have allegedly been threatened that if they don't sign on YouTube's terms they could find their music videos blocked. Alison Wenham, chief executive of WIN, said:
"We have been hearing from many companies across the world who are expressing fear, displeasure, outrage and confusion at the phone calls, letters and bullying they seem to be receiving from YouTube employees."
http://www.theguardian.com/technolog...rd-label-deals
