YouTube's Big Traffic Stick Forces PRS To Slash UK Streaming Royalty Rate

from the who's-got-the-value dept

Back in March, YouTube began blocking music videos for users in the UK after it said the PRS, the country’s music licensing body, was charging royalties so high that it was losing money every time a user watched a video. As Mike pointed out at the time, “Google is making the point to PRS: you need us much more than we need you.” It looks like that point’s been made, as the PRS last week cut its streaming royalty rates by more than half, and is now basically begging YouTube to remove the block, since the site was at one point responsible for 40 percent of PRS’ online plays. It looks like maybe the PRS is beginning to understand that without useful distribution (like that provided by YouTube), its members’ content loses a lot of value, and that in turn, moves it makes to hamper distribution (like high royalty rates) actually serve to destroy value, not deliver it.

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Companies: google, prs, youtube

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Comments on “YouTube's Big Traffic Stick Forces PRS To Slash UK Streaming Royalty Rate”

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34 Comments
RD says:

I say...

I say YouTube tells them to go f*ck themselves. Hard.

They tried to strong-arm them, and are now learning what it means when you pick a fight with a dog bigger than you. They deserve NOTHING, and YouTube doesnt NEED them. Cut them off at the balls, and teach them and every other greedy, over-valuing, big-content, unleash-the-lawyers-on-your-customers, screw-the-artist A-HOLE company out there a very big lesson.

Adapt or die. Learn how the world works now, adjust to it, or die.

Stupid Genius says:

Re: I say...

Lets compare for a second. Lets say… for example.. strictly an example… that i was a drug dealer. big time cocaine czar of some sort. and i decided that i needed 2 charge people double what they were paying for pure coke right. If they decided they weren’t interested any more… i lose money cuz i cant move coke. The difference here is that the prs didnt seem to understand that google / youtube > prs. G is the top dog. and when G decides that you are charging em too much, G cuts u off and u lose alot more than you THOUGHT you deserved.

Anonymous Coward says:

I’m not even sure how this is supposed to work. If there is a band in the U.K does PRS automatically represent them, even if the band doesn’t do anything to request representation? If I start some random band and I live in the UK and I put my videos on youtube and people watch it, does that mean PRS automatically collects royalties on my behalf (though they probably never actually give me the royalties that they collect)? Can I opt out, saying that I don’t want any royalties being collected for my band? If not, this is only hindering innovation, it’s not advancing it. If I’m a band and I put my work on youtube no one else should be able to collect royalties for my work against my will.

Anonymous Coward says:

Re: Re: Re: Re:

“but that doesn’t mean they’re not going to try to collect on your music, does it?”

So the RIAA/MPAA/PRS are nothing more than a bunch of parasites that try to freeload off of other peoples work? They collect money from work that other people do and they do nothing for the artists or anyone but themselves? Is that what you’re suggesting? What a bunch of lazy bums.

Anonymous Coward says:

Re: Re: Re:3 Re:

Google and youtube are offering a valuable service and the author is willingly putting his stuff on those arenas. But he should have the option (and it should be an easy to exercise option) of putting his work on Google/Youtube and not allowing these unnecessary parasitic third parties profit from it.

Anonymous Coward says:

Re: Re: Re:3 Re:

Google and Youtube are offering a valuable service to the author and the author of a work are willingly putting their work on Google/Youtube. But the author of the work should have the option (and it should be an easy to exercise option) to put his work on Google/Youtube without having these unnecessary parasitic third parties profit from it.

braindead (profile) says:

being optimistic are we?

“It looks like maybe the PRS is beginning to understand that without useful distribution (like that provided by YouTube), its members’ content loses a lot of value[…]”

i think PRS feels its getting the short end of the stick and i bet if they could sue youtube for black mail (or what ever else) that’s what we would be reading about on TechDirt today.

John Duncan Yoyo (profile) says:

Re: being optimistic are we?

>i think PRS feels its getting the short end of the stick >and i bet if they could sue youtube for black mail (or what >ever else) that’s what we would be reading about on >TechDirt today.

Well I doubt PRS has anything to sue over. Youtube decided it isn’t willing to pay the rate so it isn’t running the material. Now that turns out to be more painful for PRS than youtube.

John Duncan Yoyo (profile) says:

Re: Re: Re: being optimistic are we?

>I just think that they’re not happy about this and decided
>to go along cause there was no other alternative.

Well it is like not being willing to meet WalMart’s requirements in a town where there is only WalMart. If you want to be in the market you need to dance with the devil.

People hearing new music is the life’s blood of getting any chance for people to buy new music. Screwing all your sampling venues will destroy your market.

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