This is interesting. Well, I thought it was interesting. According to an article in the New York Times, SonyBMG, Universal Music Group and Warner Music Group all won stakes in YouTube as part of their licensing deals with the video sharing website. The three majors confirmed they had reached an agreement over the distribution of their content on the YouTube platform just ahead of Google's previously reported acquisition of the site.
Insiders say that, in theory, given Google's $1.65 billion purchase of YouTube, the majors could generate a quick $50 million by selling on the shares in the company that they were awarded, although it isn't clear if the small print of the deals they did with YouTube bosses would allow that. It's also unclear where EMI stand on all this, as they are still reportedly in negotiations with YouTube regarding the distribution of their content on the platform. That said, it is thought EMI will sign up to a similar arrangement as their rivals sometime soon.
YouTube is also in talks with the broadcasting giants, whose content is also unofficially shared on the video platform, in a bid to avert litigation by agreeing licensing deals like those signed by the major record companies. Of course the TV companies potentially have more to lose, given that they, unlike the record labels with pop promo videos, like to have more control over what shows are seen when and where (having full shows distributed via YouTube could impact on their own advertising and syndication revenues). Whether wide reaching deals can be reached with those companies, and whether further equity will need to be given away to sweeten those deals, remains to be seen.