Published Jun 17, 2014YouTube has long been the undisputed king of online video streaming, but some influential indie labels might soon need to find a new service to host their videos. As recently reported, YouTube has clashed with indie labels while negotiating the terms of its new subscription service, and now the Google subsidiary is reportedly poised to ban the labels from its site.
Arguing that they've been offered "highly unfavourable terms," the labels involved in this dispute include XL, 4AD, Cooking Vinyl and Domino; some of the artists signed to those labels include Adele, Radiohead, Vampire Weekend, The XX, Grimes, the National, Deerhunter, Billy Bragg, Animal Collective, Arctic Monkeys, Real Estate and many more.
According to YouTube's head of content and business operations Robert Kyncl, videos from the labels could be taken down "in a matter of days," the Financial Times reports.
The labels in question are being represented by a body called Impala, which has reportedly appealed to the European Commission on the matter. They claim that YouTube is lowballing them in setting up its subscription service, while YouTube argues that it will bring in more revenue for everyone.
A YouTube rep told the BBC, "Our goal is to continue making YouTube an amazing music experience, both as a global platform for fans and artists to connect, and as a revenue source for the music industry. We're adding subscription-based features for music on YouTube with this in mind — to bring our music partners new revenue streams in addition to the hundreds of millions of dollars YouTube already generates for them each year. We are excited that hundreds of major and independent labels are already partnering with us."
Major labels Universal, Sony and Warner have agreed to deals with YouTube. Still, if the site can't resolve its dispute with the indie labels, it's only a matter of time before fans and musicians begin looking for alternate services.
YouTube will reportedly begin testing its subscription service within the next few days, with the full launch planned for later in the year.