YouTube (which is owned by Google) is launching a new streaming service, and they’re pretty much stopping at nothing to save a few bucks. The video Goliath is in a bitter battle with independent labels over royalty fees, which are already infamously low. Though independent labels account for over roughly 30% of the music market share, they have been offered abysmal deals on royalty rates which they must accept or risk having their videos pulled by YouTube. Basically, that means that artists like Jack White, Vampire Weekend, Arctic Monkeys and more whose labels haven’t conceded to the diminutive payout terms will be axed from YouTube’s video collections and its new streaming platform.
Meanwhile, major label conglomerates Sony, Warner, and Universal were given acceptable terms, according to The Guardian.
WIN, an organization that represents independent labels on an international front, told press today:
“We have tried and will continue to try to help YouTube understand just how important independent music is to any streaming service and why it should be valued accordingly. Music fans want a service that offers the complete range of music available.”
Many musicians and independent label heads are continuing to decry YouTube’s actions towards pulling the videos, which may come down “in a matter of days.”