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Warner Music Returns to YouTube

johnson-nathania
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Last December, Warner Music decided not to renew its contract with YouTube. They wanted more money from the advertising coming in to YouTube as a results of the company's popular music videos. It was only slightly ironic since YouTube (and social media in general) has been notorious for not monetizing very well.

Meanwhile, another major label, Univeral was out there touting the benefits of having their videos on YouTube, which actually made music videos a viable part of a business model again (you know, ever since MTV wrapped their business model around socialites in Hollywood.)

Not only did Universal renew their contract, but they partnered with YouTube to create their own music site, Vevo. Sony a also renewed their contract.

Of course, traffic on YouTube continues to soar. In August alone, Warner Music is returning to YouTube. They'll be back to making tens of millions of dollars off what is essentially a marketing medium.

The new deal allows them to sell their own ad inventory and includes a revenue sharing agreement. Warner will also be using the Content ID program to make money from videos uploaded by third parties that use content developed by Warner artists.


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