YouTube to block some indie labels as it rolls out paid music service

YouTube to block some indie labels as it rolls out paid music serviceIn the past few months, there have been several rumors which said that YouTube was going to launch a paid music service later this year. Looks like these rumors were bang on target as the online video website confirmed this Tuesday that YouTube will release a similar service this summer.

The company has already signed up hundreds of record labels and indie artists for this new service, however there are some indie labels who have not signed the new contract. These include famous artists like Arctic Monkeys and even Adele, who will be soon removed from the website according to a statement given to Financial Times by YouTube.

The three major record labels namely Universal, Sony and Warner have agreed with the terms of the new contract, however there are indie labels like the ones mentioned above who are unhappy with the terms. If the Google owned YouTube is unable to add these labels to the new contract, then their videos will be blocked by the website pretty soon.

In the new contract, YouTube will have free videos which will be supported by Ads like they do now along with a paid subscription service which will allow users to watch music videos, which can include the whole album without any intrusive advertisements. Additionally, the paid user will also get an option to play the video offline, which can come in handy when they don’t have a strong internet connection.

While there are lots of record labels and indie artists on YouTube, the company is looking to impose similar terms on everyone. So, even if big record labels like Sony or Universal agree to the terms, indie labels may not be entirely happy with it. It is said that the company is not ready to negotiate terms with indie labels over royalty rates which has led to this disagreement.

And looks like there’s very little chance that YouTube would budge to their demands as YouTube’s Robert Kyncl is of the opinion that getting licensing deals with everyone is not really an achievable goal. So, YouTube is not really looking to strike deals with everyone at this moment which means that indie labels would be blocked from the website in the coming days.

While the price of the subscription would be an important factor which decides whether this move would be successful, some record labels are also worried that the free service supported by ads would prevent users from paying for the service. But YouTube claims that the paid service will have plenty of features that fans love, which would be an incentive for users to subscribe to the service.

So, let’s wait and watch whether this move by YouTube turns out to be successful.

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About the author

Joel is an experienced blogger who covers all kinds of news relating to tech. He is a huge fan of Android and can be seen playing around with his phone in his spare time.