Rumors have come in that the larger record labels are not happy with YouTube. The most successful video sharing platform has apparently been a constant thorn in the back of the worlds’ largest music producers.
Universal Music Group, Sonic Music Entertainment and the Warner Music Group (also known as the Big Three within the industry) could have plans to wrestle away YouTube’s control over the music market. They have been apparently trying to support rivals of the video platform, but if that does not work they may be prepared to take things further.
Google has recently announced that total views on YouTube have tripled over the years, while the time an average user spends on the site has increased by more than 50%. The overall YouTube viewings on mobile devices such as phones or tablets has also more than doubled.
While Google may be proud of the service it acquired in 2006, major record labels are not sharing the enthusiasm. Reports indicate that even though the success of the site has soared the earnings the companies get from YouTube’s ad based system have remained largely the same.
The Big Three release many of their videos on the free-platform but this may not be true for long. Though their videos have often millions of views, the companies can apparently hardly make a profit from them. This could also indirectly affect the sales of their records, since potential buyers know that the most popular songs are always going to be available on YouTube.
As such, it could be that platform is actually causing major labels to be at a loss. The companies are also discontent with the way Google handles its monetization system. The Internet giant apparently directly controls everything related to advertising, leaving content creators or distributors with little say on the matter.
However, record labels are unlikely to suddenly pull of their videos away from the platform. Google may not be one of the best business partners out there, but it is unlikely that a serious competitor to YouTube will appear in the near future. Even with Facebook trying to enter the market, the quarterly call has proven just how strong of a position YouTube holds.
And even if the Big Three try to remove their videos they are most likely going to be punished hard by the average user. Most people would see it as a sign of greed and turn to the alternative of piracy.
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