EMI, the British music group behind Coldplay and Gorillaz, has confirmed it is holding talks with YouTube, which could see it offer its content on the popular social networking website.

 

YouTube said yesterday that it has held discussions with a number of record labels in a bid to offer music video downloads. Warner Music Group, which was earlier this year involved in a takeover battle with EMI, also confirmed it is talking to the website.

 

YouTube co-founder Steve Chen said the site hopes to "have every music video ever created" within 18 months. Although YouTube, which was this week named one of Time magazine’s "coolest websites" has spoken with music groups, no formal agreements have yet been reached.

 

This week The Times reported how the site created a new online hero when a 79-year-old British widower’s video monologues became the hottest sensation on the web, attracting more than a million downloads.

 

The website is now aiming to go beyond being a site for sharing home videos to becoming a provider of mainstream entertainment.

 

YouTube hosts homemade videos, but pirated commercial clips can be found. The site has an estimated 43 per cent of the market for online video, according to Hitwise.

 

A spokesman for EMI said: "EMI is talking to YouTube about a variety of possible business models."

 

YouTube sprung out of nowhere a year ago and now claims to show more than 100 million videos a day. It is negotiating for rights to post current and archive music videos on its site, and said any commercial model it decides on will offer the videos free.

 

The social networking website plans to allow users to add the music videos to their own profiles and post reviews.

 

Mr Chen said: "Right now we’re trying to very quickly determine how and what the model is to distribute this content and we’re very aggressive in assisting the labels in trying to get the content on to YouTube."

 

Earlier this year, YouTube agreed a deal with US broadcaster NBC to promote its autumn schedule on the website. The broadcaster had previously had to ask YouTube to remove unauthorised footage of its shows posted by users.

 

The news form YouTube the week it emerged that internet arm of News Corporation will sell Fox films and television content in an attempt to take a corner of the burgeoning online content market.

 

Fox is making its movie and television content available for download on Microsoft’s Windows devices. Movies available for Windows in October will include X-Men: The Last Stand,Garfield: A Tail of Two Kitties and The Omen.

 

The digital music market is growing at a rapid rate and a deal with key internet players like YouTube would make sense for music groups. EMI said in April that digital music revenue jumped more than 150 per cent in 2006, stripping out currency fluctuations, and was likely to account for more than 5.5 per cent of recorded music revenue.

 

Source: http://business.timesonline.co.uk

damn those greedy mongers that are EMI... sounds pretty good though.

EMI will want money so that their videos can be hosted on youtube.

 

Soon uTube will turn into a 2 tier system, where you have to pay to watch some videos

yep, natural progression. The other alternative would be YouTube decining EMI's generous offer and subsequently get sued for breach of copyright.

YouTube to Kill Apple iTunes?

 

EMI, the British music group behind Coldplay, says it is now in talks with YouTube to host music videos and other content on the popular social networking website. - Photo Illustration by Digital Journal

 

Digital Journal — There’s not very much that can shake the power of iPod or iTunes. That is until YouTube co-founder Steve Chen says he wants to have “every music video ever created” on YouTube.com within the next 18 months. Then, anyone that works for Apple is no doubt going to start their morning with a spew of profanity.

 

EMI, the British music group behind Coldplay and Gorillaz, says it is now in talks with the Web TV giant to host music videos and other content on the popular social networking website.

 

YouTube, which has about 20 million monthly visitors watching more than 100 million videos every day, has confirmed it has held discussions with a number of record labels in a bid to enrich the site with videos. Warner Music Group, the music moniker that was involved in a takeover battle with EMI earlier this year, also says it is in talks with the site.

 

If YouTube gets its hands on “every” music video, it marks the beginning and end of music as the world knows it. Without more content changes (please no crappy reality shows) channels like MTV and Canada’s popular MuchMusic are going to have to start taking longer summer vacations.

 

But this news is a lot bigger than MTV: A free YouTube music video service will end the paid-for content business model and will trip iTunes until it falls flat on its face. Numero uno no more.

 

With YouTube music video revenue set to be provided by advertising, Apple’s dominant position in the online music download scene will be dramatically changed. The company has developed incredible relationships with record labels, but that ain’t going to save their hide — unless Apple goes free or comes up with a new gimmick.

 

To further complicate Apple’s problem is its technology: Apple uses a proprietary file format that forces its iTunes content to be played on iPod devices. In the long term, this could seriously hurt revenue potential as services like YouTube use much more widely available file formats like Flash video — supported by every Internet browser.

 

Mark Mulligan, vice-president at JupiterResearch, told the Guardian Unlimited that YouTube likely has the best chance of becoming a free, video-based alternative to iTunes.

 

“Any service that YouTube puts in place is, almost beyond reasonable doubt, not going to be iPod compatible,” Mulligan said. “If they develop portability — and that should definitely be on the table — then Apple could be in the unusual space of playing catch up.”

 

Right now, YouTube also holds the powerful position of being able to potentially launch a competitor to the iPod, as many have come and failed to reach the same level of success.

 

For example, if a company like Microsoft were to buddy-up with the service and launch its upcoming Zune player to be totally YouTube-compatible, there would be an instant competitor for iPod. If no one company makes a deal with YouTube exclusively, there could potentially be dozens of iPod alternatives.

 

"Either way it is a nail in the coffin of paid-for services as the dominant online model versus ad-funded alternatives," Mulligan told the Guardian Unlimited.

 

Earlier this year when Apple renewed its deals with record companies, it was able to hold back the wolves from charging more for certain content like new releases. Now, it might be forced to come up with a new model all together.

 

YouTube’s desire to get music videos, and its current deals with other companies to host trailers and network TV teasers, is a perfect example of the steps YouTube is making to try and stay ahead of the hundreds of video sites that popped up overnight, craving to get a piece of its lucrative pie.

 

This news also steps all over Google which has aggressively pursued online video, and AOL which has spent millions of dollars and a lot of time to develop a rich music video experience.

 

http://www.digitaljournal.com/news/?articleID=4882

:o!!!!!!!!!

:stunned: