In the coming months, YouTube plans to debut a streaming service. But the video giant has been criticized for its negotiation tactics by The Worldwide Independent Network (WIN), an organization that represents independent record labels around the world, as Billboard reports.
In a statement, WIN charged YouTube with lowballing the labels in negotiations, and threatening to pull their videos from YouTube if the terms are not agreed to. As they write:
At a time when independent music companies are increasing their global market share WIN has raised major concerns about YouTube’s recent policy of approaching independent labels directly with a template contract and an explicit threat that their content will be blocked on the platform if it is not signed.
According to WIN members, the contracts currently on offer to independent labels from YouTube are on highly unfavourable, and non-negotiable terms, and undervalue existing rates in the marketplace from existing music streaming partners such as Spotify, Rdio, Deezer and others.
WIN has held extensive talks with YouTube at their instigation over the last 24 hours to try and resolve this issue but no progress has been made. WIN’s request for YouTube to rescind the termination letters sent to its members has not as yet been agreed to.
WIN CEO Alison Wenham also wrote:
Our members are small businesses who rely on a variety of income streams to invest in new talent. They are being told by one of the largest companies in the world to accept terms that are out of step with the marketplace for streaming. 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. 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.
In response, The Guardian obtained a statement from YouTube:
YouTube provides a global platform for artists to connect with fans and generate revenue for their music. We have successful deals in place with hundreds of independent and major labels around the world, however we don’t comment on ongoing negotiations.
YouTube has currently agreed to terms with Sony, Warner, and Universal—”the big three” major labels.
