Google has reportedly managed to strike a crucial long-term deal with the world’s top two music labels, Universal Music Group and Sony Music Entertainment, helping it move forward with its upcoming subscription service that would merge Google Play Music and YouTube.
It’s unclear how long the new deal would last.
For what it’s worth, Bloomberg reported Tuesday that the new agreement establishes royalty rates between YouTube and rights holders while promising stronger policing of user uploads of copyrighted songs via YouTube’s Content ID feature.
It also paves the way for a new paid service that would merge Google Play Music and YouTube.
Universal Music Group said its deal with YouTube will give artists more flexibility and better pay as it got control for the first time over what appears on ad-supported channels.
Sony Music Entertainment declined to comment.
From the article:
YouTube expects to convert some of the millions of people who listen to music for free on its video site into paying subscribers. That would help strengthen its relationship with the major label groups after years of tension over whether the Google-owned site was paying enough to copyright holders.
Some songs and videos will only be available on the upcoming paid subscription service.
Google signed a similar deal with Warner Music Group back in May.
YouTube is definitely the world’s top destination for not just music lovers, but managers and record labels as well who use the service as a promotional vehicle. Google’s music offerings are currently in a disarray and I’m unsure they’ll manage to persuade consumers to pay for music if the forthcoming service, internally code-named ”Remix”, will be YouTube-branded.
Image: Google’s YouTube Music app for iPhone