Google’s YouTube platform has signed new deals
with two of its most important content providers: Universal Music Group and Sony Music.
Terms of the new agreements were not disclosed, but Universal said it would lead to
“improved content flexibility and growing compensation” for its artists.
Music videos are among the most-watched videos on YouTube, with a recent study showing
that more than 40% of the platform’s users watch at least one music video in any given month.
As the dominant free streaming video service, YouTube has become arguably
the most popular place for consumers to watch music videos. As labels and artists continue to seek to monetize their work, the combination of paid streaming services and free, ad-supported options
like YouTube have filled in that gap.Music videos on YouTube are also important for the platform, because they represent a broadly appealing genre that is also brand-safe for
advertisers.
The new arrangements with Universal and Sony (and a deal YouTube signed with Warner earlier this year) suggests that Vevo, a music video service co-owned by Universal,
Sony and Warner Music, is set to have its contract renewed with YouTube next year.
Music videos on YouTube are also important for the platform, because they represent a broadly appealing
genre that is also brand-safe for advertisers.