Google versus the UK Music Industry?

If any of you listen to music on YouTube then you may have noticed a reoccurring problem in the last few days. YouTube were forced to remove all music videos from the view of UK audiences by yesterday, in compliance with PRS (Performing Rights Society) requirements. YouTube have been unable to come to an arrangement with PRS, who collect royalties on behalf of UK artists, regarding the renewal of their current PRS licence; which ended on Tuesday.

This time around PRS are demanding far more from YouTube than they ever have which has led to a stalemate situation with YouTube unwilling to pay. A post from their UK blog reveals why:

Our previous license from PRS for Music has expired, and we’ve been unable so far to come to an agreement to renew it on terms that are economically sustainable for us.

But why can’t YouTube just pay? Isn’t it about time artists starting earning more money from all the plays that their creations are receiving? And YouTube certainly aren’t struggling? They’ve found themselves in the position of the World’s number one music search engine.

But YouTube try have tried to justify their actions with this statement:

We value the creativity of musicians and songwriters and have worked hard with rights-holders to generate significant online revenue for them and to respect copyright. But PRS is now asking us to pay many, many times more for our license than before. The costs are simply prohibitive for us — under PRS’s proposed terms we would lose significant amounts of money with every playback. In addition, PRS is unwilling to tell us what songs are included in the license they can provide so that we can identify those works on YouTube

OK, so maybe PRS have something to say for themselves as well? Maybe YouTube (a.k.a. Google) aren’t being too nasty? So I went over to their website press section and read this:

PRS for Music is outraged on behalf of consumers and songwriters that Google has chosen to close down access to music videos on YouTube in the UK.
Google has told us they are taking this step because they wish to pay significantly less than at present to the writers of the music on which their service relies, despite the massive increase in YouTube viewing.

This action has been taken without any consultation with PRS for Music and in the middle of negotiations between the two parties. PRS for Music has not requested Google to do this and urges them to reconsider their decision as a matter of urgency.

Google had revenues of $5.7bn in the last quarter of 2008.

Ha! So it’s Google! Their just being tight fisted b*st*rds!? That would certainly make sense and it seems to be the way. Steve Porter CEO of “PRS for Music” went on to say:

We were shocked and disappointed to receive a call late this afternoon informing us of Google’s drastic action which we believe only punishes British consumers and the songwriters whose interests we protect and represent.

So who do you think is on our side, the good music loving people of the United Kingdom? Who protects our people, the musicians!? Not the fat cats at Google HQ who are running a business for the money… It’s the musicians out there who are skint but still making music that I’m with and that’s who PRS are supposed to serve.

On the 10th of March PRS released this statement:

Talks between “PRS for Music” and Google took place today to discuss the licensing of YouTube following Google’s sudden decision to block premium video content on the service in the UK.

The meeting was positive. We are committed to ensuring our 60,000 songwriter and composers members receive a fair deal and that UK consumers continue to enjoy music videos on YouTube.

And today we have music videos again! So I can go back to compiling playlists of all those tunes that I’ve lost over the years! But one thing rings true. There could be stormy times ahead for Google as struggling musicians try to claw back some of their lost earnings. Good for them I say!

Neil McCormick did a really good article about the issue which appeared on the Daily Telegraph website. I read it after towards the end of the piece but you’d be forgiven for thinking I hadn’t! His take on the issue is that this is simply another step in YouTube’s inevitable demise:

YouTube has already fallen out with Warner Music, leading to the muting of all Warner content. I suggested this might be the beginning of the end of the video site and the rapid escalation of this dispute does little to persuade me otherwise.

I don’t think it is. I don’t think it can be! I think the potential for YouTube as a source of revenue, so desperately needed by UK artists, is too big to be missed and what we could be witnessing here is a landmark moment in the history of online music. The arrangement that Google and PRS arrive at will most likely set the benchmark for all other video sites and if we see more cash for artists because of it then hurray! But one thing’s for sure, the gloves are on!