As Foxtel move to launch new internet based TV music and movie programs the Google owned YouTube is tipped to be cutting a deal with Hollywood movie house Warner Music Group that will see music videos from artists such as Madonna and Green Day being made available for free.
AdAge claims that the deal, which one source described as imminent, would resolve a dispute over licensing rights that caused Warner Music to pull music videos by its artists from Google Inc’s YouTube in December.
A deal would mean that Warner Music’s stable of artists would once again appear on the world’s most popular video sharing site, joining those from EMI Music, Sony Corp’s Sony Music Entertainment and Vivendi SA’s Universal Music Group, all of which have renewed deals.
According to Reuters financial details are unclear; but Warner Music Chief Executive Edgar Bronfman has made known his desire to improve terms of his previous deal with YouTube. Like other industry executives, he faces a music market that has been stung by tumbling CD sales and slowing digital music growth.
The deal would also open the door to a possible role for Warner in a new music video website called Vevo, which is backed by Universal and Sony and will be supported by YouTube’s technology platform.
An Analyst in Australia said “Content is going to comefrom several sources including YouTube. Foxtel are going to face tough competition with the cost of broadband set to be a key factor in the future”.