Google announced separate deals Monday with Warner Music Group and Sony BMG Music in which Google Video users will gain free access to the entire music video libraries of both labels, while WMG and Sony BMG share in the advertising revenue generated by the videos.
BMG Music in which Google Video users will gain free access to the entire music video libraries of both labels, while WMG and Sony BMG share in the advertising revenue generated by the videos.
The revenue-sharing deals, which go into effect this month, contrast sharply with a deal announced three weeks ago between YouTube and WMG, in which the music company said it would allow YouTube to distribute its content.
The YouTube deal was contingent on YouTube’s development of a reporting technology that would help monitor and manage the site’s accordance with WMG’s copyrights.
A week before the WMG deal was announced, Universal Music’s head honcho, CEO Doug Morris, threatened massive lawsuits against YouTube (see YouTube, Warner Make Music, YouTube Blasted, and Music Raises Volume on YouTube).
YouTube, Warner Make MusicMusic Raises Volume on YouTubeNeither of the two deals announced Monday makes mention of technical contingencies or copyright monitoring and management.
They both state in clear language that users of Google Video will be able to watch any of the thousands of music videos, artist interviews, behind-the-scenes footage, and other artist-related content from both WMG and Sony BMG.
Google shares rose $9.46 to $429.96 in recent trading, while WMG shares fell $0.33 to $26.50, and Sony shares dropped $0.15 to $37.63.
Deep Pockets Google
“It’s deep-pockets Google, so Warner is less concerned about copyright than they were with YouTube,” said Dave Gardy, chief executive of TV Worldwide, a Chantilly, Virginia-based corporate streaming video pioneer.
Chantilly“Google is a powerful play so it’s a deal Warner has to make,” he continued. “They could figure out any copyright ramifications later. Follow-on distribution and support from someone like Google are always going to be there.”
It’s also in Google’s best interest, particularly since it is in a stronger position than YouTube on this score, to make deals with the music companies because video content is currently hot and very competitive, said Mr. Gardy.
“Google is in competition with YouTube despite the rumors about a possible purchase of YouTube by Google,” he said. “It’s critical for Google to make deals with the music companies early on.”
Content Distribution
Both WMG and Sony BMG will seek to generate revenue by offering their content to the hundreds of thousands of advertisers on Google’s AdSense network. Google’s AdSense affiliates will also have access to the label’s music video content.
Google is developing technology that will allow Google Video fans and users on AdSense sites to include certain content from the music videos in the videos they create and upload to Google Video.
Web publishers will be able to display videos and add value to their online content.
Sony suggested that a fan site devoted to a particular artist could run ad-supported music videos from that artist. Each time a user is interested in the accompanying ad and clicks on the video, the web publisher, Sony BMG, and Google accrue revenue.
Certain WMG music videos will be available immediately on Google Video for $1.99 per download.
Contact the writer:CMedford@RedHerring.comdel.icio.us
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