YouTube and Warner Music Group were back in harmony on Tuesday with a deal to put the studio s songs back on the world s most popular online video-sharing service.
We are happy to announce that Warner Music Group s artists are returning home to YouTube, said Chris Maxcy, head of music partnerships at Google-owned YouTube.
Music videos from Warner, home to Eric Clapton, Kid Rock, Madonna, the Red Hot Chili Peppers, Green Day and other music royalty, were removed from YouTube in December amid disagreement over a new licensing arrangement.
The new deal lets Warner share in advertising revenue and post its own ads at channels devoted to the studio s artists, according to YouTube.
Warner will also make money from ads placed with user-generated snippets that incorporate music to which the studio holds copyrights. Warner music will make its comeback gradually at YouTube in coming months, according to Maxcy.
We think it s a win for artisans and fans around the world, Maxcy said in a conference call with reporters.
We ve reached a new and expanded agreement with Google and its YouTube subsidiary that will bring WMG content back to the service as early as the end of the year, Warner said in response to an AFP inquiry.
YouTube users will enjoy an enhanced user experience on YouTube with a feature-rich, high-quality premium player and enhanced channels, Warner said.
The multi-year deal covers the full Warner music catalog, according to YouTube, which declined to provide specific financial details.
With Warner on board, YouTube now features artists from all four of the major music labels along with hundreds of independent labels.
This points to the fact that we have been able to partner with the industry, Maxcy said.
Music channels are among the most popular on YouTube and account for billions of the videos viewed.
Warner was the first major record label to allow YouTube to serve its music videos online.
YouTube and Warner continued talks during their months of estrangement, according to Maxcy.
They both needed each other, said analyst Rob Enderle of Enderle Group in Silicon Valley. It took time for them to get over their arrogance and realize that.
Warner needs to have its music available to the massive YouTube audience, while YouTube needs Warner on board to show it is in tune with studios, according to the analyst.
For Warner to remain relevant, they need properties like YouTube to pick them up, Enderle said. For YouTube to be fully legitimized, and not appear like a bad boy, they need the media industry to embrace them.
Google has been working to address piracy concerns of copyright holders since it bought YouTube in 2006 in a deal valued at $1.65 billion.
Solutions have included tools for identifying and removing copyrighted material posted on YouTube without permission, and sharing revenue with owners of content.
The deal announced Tuesday brings Warner back into a YouTube fold that includes Universal Music Group, Sony Music Entertainment and EMI Music.
Google announced early this year that YouTube is working with Universal to create a Vevo entertainment service.
YouTube will provide technology to power Vevo, which will offer exclusive Universal music videos at a vevo.com website. Vevo is expected to launch by the end of the year.
Vevo is something different, a completely separate thing, Maxcy said Tuesday while discussing the Warner deal.
