YouTube and Warner Music Group Corp. will announce a deal Monday that will put thousands of Warner music videos on the video sharing site and allow user created videos to legally use Warner owned music.
YouTube is reported to have created technology that will automatically detect when copyrighted music is used in videos, give Warner the right to accept or reject those videos and will calculate the royalty fees Warner is owed.
Financial details haven’t been disclosed yet, but may include a cut of advertising revenue in exchange for licensing rights. It’s also unclear who will pay the royalty fees; that payment may come out of the advertising revenue or it may be demanded of the individual users who have put Warner music in their videos.
Could it be that start of a trend where TV shows and even movies are licensed out as well? Will a large media company reap the benefits of the massive YouTube user base? Or will they get cold feet when all sorts of unauthorised mash ups appear? It will be interesting to see how this works out.