Artists such as Adele and Radiohead are set to start disappearing from YouTube, following a refusal by independent record labels to agree terms with the site.
In advance of the launch of a new music streaming service YouTube has, it appears, negotiated license agreements with the three major labels – Sony, Warner and Universal. However, according to the Worldwide Independent Network (WIN), which represents indie labels, they haven't been offered the same deal.
Instead, it says, independent labels have been approached with template contracts offering unfavorable - and non-negotiable - terms. These terms, they say, undercut existing rates from Spotify, Rdio and others.
"This is not a fair way to do business. WIN questions any actions by any organization that would seek to injure and punish innocent labels and musicians — and their innocent fans — in order to pursue its ambitions," says Alison Wenham, CEO of WIN and chairman of the Association of Independent Music, UK (AIM).
"We believe, as such, that these actions are unnecessary and indefensible, not to mention commercially questionable and potentially damaging to YouTube itself, given the harm likely to result from this approach."
Two weeks ago, the labels announced that they were asking the European Commission's Directorate-General for Competition to take emergency action prohibiting YouTube from taking matters further until a full investigation could be carried out.
But it seems that YouTube isn't put off. Speaking to the Financial Times, Robert Kyncl, the company's head of content and business operations, says that videos from independent artists could be blocked "in a matter of days" if the labels continued to refuse to sign. Some content will still be available va channels such as Vevo, but exclusive content such as live performances will vanish.
"While we wish that we had 100 per cent success rate," he says, "we understand that is not likely an achievable goal and therefore it is our responsibility to our users and the industry to launch the enhanced music experience."
The new YouTube premium service will dispense with ads and allow subscribers to download full albums for offline listening. Rumored to be called YouTube Music Pass, it's expected to launch later this summer. Pricing hasn't been announced.
Moving into paid services was always going to be a bit of a hurdle for YouTube, which has up to now been almost synonymous with 'free'. Losing artists of the caliber of the Arctic Monkeys really won't help.
The site has also in the past made much of its support for independent artists, as Kristoffer Rom, co-chairman of Danish indepependent label association DUP points out.
"YouTube’s self-proclaimed role as a 'a distribution platform for original content creators and advertisers large and small' is little more than hollow branding of a company that in reality is losing touch with the very creators and audience that have bloated the size of the platform into the stratosphere over the years," he says.
"For a global mastodon like YouTube to further undermine the value of music to a level well below existing streaming services can spread like a virus and destroy the independent recording industry, labels and artists alike."
