It seems that at least one of the major labels understands the power behind user generated content. Warner Bros. Records has entered into an agreement with YouTube to make all of their music videos available to YouTube’s 19 million strong user base. For free, no less. Furthermore, the agreement stipulates that YouTube users have permission to incorporate and use the videos in their own work. That’s a far cry from Sony’s pay for play deal with Google, or Universal’s blanket ban on their videos being available (legally, that is) on user content sites.
What’s interesting to me is that the holdout companies are stating that they deserve a slice of the revenue, yet videos are supplied to MTV for free. I mean really, why should user content site users have to play to view or upload what is effectively advertising? It’s in the label’s best interest to keep these sites going, especially since MTV shows what? 4 videos a day now?