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The deal would allow WMG to retain the right to sell ads that run next to its videos and keep the bulk of the revenue.
Tuesday, September 29, 2009

WMG AND YOUTUBE ARE A GO

After a Nine-Month Boycott, Warner Videos Will Return to Google's YouTube
Warner Music and YouTube have agreed on a deal to return the Bunny's video clips to the Google-owned site after the company pulled all its content last December.

WMG's statement read: "We're pleased to announce that we've reached a new and expanded agreement with Google and its YouTube subsidiary that will bring WMG content back to the service as early as the end of the year. Under the agreement, members of the YouTube community will not only be able to access videos and other music-related content from Warner Music Group recording artists and songwriters, but will also gain access to an enhanced user experience on YouTube with a feature-rich, high-quality premium player and enhanced channels."

The deal allows WMG to retain the right to sell ads that run next to its videos and keep the bulk of the revenue, with the company enlisting third parties to sell the ads and line up more lucrative arrangements like sponsorships for particular videos or artists.

That could address one of WMG’s biggest complaints about YouTube: the ads that run on the site don’t generate sufficient revenue for the record company.

In certain respects, the deal mirrors the agreement YouTube reached in March with UMG. But Warner has no plans to create a freestanding site like Vevo, conceived by Universal, which reeled in Sony Music three months ago. Warner and EMI have yet to throw down with UMG on what some are describing as “Hulu for music videos.”

While WMG clips would remain on the main YouTube site, individual artists' pages and channels would be redesigned to emphasize things like digital-download sales and links to the artists' own sites. The pages could also be customized for corporate sponsors.

The news put WMG on Marketwatch’s short list of stocks expected to be particularly active during today’s session. As of 11:40 EDT, shares were up 43 cents to $5.59, up from previous close of $5.16.

 
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