Warner Bros. and YouTube settle squabble

By Jim Hagerty

Staff Writer

Warner Bros. artists like AC/DC, Bjork, Green Day and a host of others, will make a return to YouTube. After it claimed it wasn’t happy with advertising revenue from YouTube, Warner Bros. Music, Inc., decided to remove their videos from the popular site. The nine-month licensing argument that ensued has now reportedly been re-worked.

Under the new agreement, Warner Bros. will return its artists to YouTube and retain the right to sell bulk ads next to its videos and receive the majority of succeeding revenue. With ads placed next to videos, YouTube will still reportedly profit, even if it gives Warner the majority of the cash flow.

Earlier this year, Universal Music Group (UMG) struck a similar deal with YouTube allowing videos of its artists to also be featured on its own free-standing site. UMG is the world’s largest music publisher. It owns BMG, Island Def Jam, Verve and Universal Motown.

Unlike UMG, Warner will keep all its videos on YouTube; however, Warner will reportedly use third-party marketing companies to bolster ad sales and promote artists. The deal is said to be signed this week.

From the September 30 – October 6, 2009 issue.

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