SonyBMG are stepping up the pressure on music websites to stop streaming their videos until they have signed a new 'pay-per-click' licence arrangement with the major. As previously reported, SonyBMG are following Universal Music's lead in turning the music video into a proper revenue stream by charging online on-demand video services a small fee every time one of their users watches a video, rather than a blanket royalty fee that is unaffected by how often a video is streamed. The move reinvents the music video as a revenue stream in its own right rather than just a marketing tool to promote the sale of audio releases.
SonyBMG labels started contacting websites who stream music video earlier this month. Yesterday was the deadline for those websites to take SonyBMG's catalogue off their video platforms while new licence arrangements are negotiated. In a final letter alerting websites to that demand, SonyBMG said earlier this week: "As our label marketing teams have been discussing with you, as of the close of business on May 18, third party online sites which are currently streaming Sony BMG's videos on an "at-will" basis will no longer be authorized to exhibit these music videos in accordance with past practices. Going-forward, we will be entering into more formalized written license agreements which authorize the streaming exhibition of our music videos on mutually acceptable commercial terms and conditions."
There is no word yet on how negotiations are going between SonyBMG and the major online music video providers - in particular AOL Music, MSN Music and Yahoo Music - although all are expected to reach an agreement with the major under the new system.