Leaked memo from indie label says YouTube’s terms are fair

By Malarie Gokey Published June 20, 2014

indie label memo youtube music service awards — Image used with permission by copyright holder

Earlier this week, controversy erupted over reports that YouTube will block videos from indie label artists who haven’t signed the licensing agreement for YouTube’s upcoming paid music subscription service. The Worldwide Independent Network (WIN), which represents indie labels claims that YouTube’s terms are unfair and the new contract pays less than Spotify and other streaming services.

Now, the Verge has obtained a leaked memo from European indie label Believe Digital, which states that YouTube’s offer to indie labels is not only comparable to the rates Spotify and its competitors offer, but actually fair. The memo also includes a list of other indie labels that Believe Digital says have agreed to YouTube’s terms.

Believe Digital says that its share of revenue from the videos will actually increase because of the deal.[/pulquote]

Recommended Videos

Believe Digital signed with YouTube after six months of tough negotiations in February 2014. The new contract reportedly covers content available on YouTube’s current free service, as well as videos uploaded on the upcoming paid service. Believe Digital says that its share of revenue from the videos will actually increase because of the deal.

“The new contract includes a significant increase of the revenue share rate on UGC [user-generated content] for sound recording. This type of use is currently the largest source of revenues from YouTube,” the memo reads.

The memo also says that Believe Digital thinks YouTube offered its indie artists the same rates it offered to major labels. This revelation is particularly surprising, given the fact that WIN claims YouTube offered to pay major recording labels higher rates than the indies.

“From a market standpoint, the information we have is that the rate Believe Digital has negotiated with YouTube for the subscription service is strictly identical to the rate negotiated by major labels,” the memo adds.

As if aware that its comments might upset WIN, the internal memo admits that the organizations concerns about a YouTube monopoly over music videos may still have merit. Believe Digital also says it did not receive threats from YouTube about blocking content.

“Aside from the anti-competition issues raised by WIN (blocking of the content by YouTube, which we can not comment on other than to say that we have not experienced them ourselves), my personal opinion is that the views recently expressed by WIN and IMPALA address true, important, and very legitimate concerns,” the memo states.

In addition, the memo mentions several other indie labels that Believe Digital claims have signed an agreement with YouTube. Among those named are The Orchard/IODA, Toolroom, Kontor Records, Made in Etaly, T-Series, YG Entertainment, SM Entertainment, Farolatino, OneRPM, Spinnin Records, Ultra Records, and others.

So far, YouTube has remained almost completely silent on the issue in hopes of avoiding bad press. YouTube did tell Digital Trends that negotiations are ongoing with the remaining indie labels and YouTube is undoubtedly reluctant to block indie artists’ videos, especially given the negative response this whole debacle has unleashed on the company. It is unknown when YouTube will block select video content, but some reports hint that it will start next week, perhaps as early as Monday June 23.

Topics

Former Digital Trends Contributor

As DT's Mobile Editor, Malarie runs the Mobile and Wearables sections, which cover smartphones, tablets, smartwatches, and…

Audio / Video

What is spatial audio? The 3D sound experience fully explained

Person listening to spatial audio using Apple AirPods Max headphones.

Since Apple added “spatial audio” to the Apple Music streaming service and the AirPods family of wireless earbuds and headphones in 2021, it feels like you can’t read about new audio products or services without running into that term. And just a few short years later, it’s seemingly everywhere.

This has led to a lot of misconceptions about what spatial audio is, how it works, and why you need to hear it for yourself. People often ask, “If Apple created spatial audio, why are other companies claiming they do it, too?” The answer is that Apple didn’t create it, and you certainly don’t need to own its products to experience spatial audio.

Audio / Video

How to download music from SoundCloud on desktop and mobile

Soundcloud Interface on a Macbook.

If you’re a huge music fan, you’ve probably combed through the many playlists, artists, and albums of your Spotify or Apple Music subscription. But what about all the indie artists of the world? Some music-streaming platforms are better than others at celebrating the
‘unsung gem’ acts, but one of the most reliable forums for new, off-the-grid tunes is SoundCloud.

Founded in 2007, SoundCloud has always prioritized music that’s a bit under the radar. With over 320 million tracks in its library, the platform will even let you download a majority of its songs and albums.

Audio / Video

The best kids headphones of 2024: for fun, safety, and sound

Two kids using the Puro Sound PuroQuiet Plus to watch something on a tablet.

Kid-friendly consumer tech is all the rage these days, so it’s no surprise that there’s an entire market of headphones designed exclusively for young ones. But when we think “kid-friendly,” sometimes we imagine products that are built to be a bit more throwaway than their adult counterparts. That’s not the case with the products on our list of the best headphones for kids, though.

We want our child-tailored headphones to include parental-controlled volume limiters, to ensure our children aren’t harming their eardrums. Pretty much every entry on our list checks this vital box, but we also wanted to point you and yours toward products that offer exceptional noise-canceling, built-in mics for phone and video calls, and long-lasting batteries for schooldays or a long flight.