After writing about how Universal Music is making tens of millions from YouTube this year, I was surprised to see Warner Music withdraw from YouTube.
Round up the usual suspect for the reasons why they’ve bailed: Warner Music wants more money from the advertising revenue being brought in.
Nevermind that YouTube has been struggling to monetize itself. Nevermind that the music industry is struggling since the fall of the cd and the rise of the mp3.
Nevermind the current crappy economy.
Warner wants more money. They didn’t get it, so they bailed on the money they were getting. In a time where CEOs are begging Congress for money to stay afloat, this seems like a stupid move.
But with other licensing deals expiring soon, we may see this scenario repeated like a bad version of Groundhog day.
If companies want to abandon an online video site which is starting to generate more searches than Yahoo and saw a whopping 100 million visitors in October, fine. But they’re shooting themselves in the foot, big time.
via Media Memo