EMI has finally followed the other three major record companies and entered into a deal with YouTube with regard to the distribution of their pop promos via the video sharing platform.
As previously reported, the Google owned video service initially faced the threat of legal action from the record companies, especially Universal Music, by allowing music fans to upload thousands of copyrighted music videos without the permission of the labels who own them. But, aware of the marketing potential of YouTube, Universal, Warner and SonyBMG struck deals with the service ensuring them a share of any ad revenues generated by their content and, according to reports, an equity stake in the video platform business. It is unclear whether there is an equity agreement in the EMI/YouTube deal.
Confirming they now have licensing deals with all four majors, YouTube chief Chad Hurley told reporters yesterday: "We're excited to add EMI Music's stellar roster of artists' content to our site and make it available to our community".
EMI chief Eric Nicoli said the YouTube deal would "offer consumers the best possible entertainment experiences" by using "innovative business models that will generate revenues for our business and our creators". He concluded: "Through this agreement EMI Music and its artists will be fairly compensated for their work".