he folks over at ars technica report that Warner Music Group has forged an agreement with video newcomer/behemoth YouTube to host its entire music video catalog. That in itself would be ground-breaking these days, but in addition Warner invites fans to create their own videos using Warner songs as soundtracks. In return, Warner will get a cut of the advertising revenues. This all bodes well for the video hosting upstart, enhancing their revenue possibilities and suggesting a path for financial sustainability. Alex Zubillaga, EVP for digital strategy and business development sums up Warner’s stand,
“This agreement establishes a model by which content companies can transform consumers’ creativity into a legitimate commercial enterprise that will benefit fans, artists and copyright holders.”
Good luck to Warner and YouTube in this joint venture. It’s a brave move, but one that seems very forward thinking.
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