Artists who don’t sign with YouTube’s new subscription service to be blocked
YouTube will soon have a premium tier. Labels have days to comply.
YouTube is getting ready to block music videos from artists that haven't agreed to the contract terms for its upcoming subscription service, the
Financial Times reported Tuesday. The videos set to get the boot include those from independent record labels and artists including Adele and Arctic Monkeys.
The new subscription service for videos will charge a monthly fee but will let users watch videos on YouTube without ads.
FT noted that the service will also allow users to watch videos "even when not connected to the Internet" on any device, suggesting some sort of pinning or downloading infrastructure to go with the platform.
Robert Kyncl, YouTube's head of content and business operations, told
FT that record labels representing 90 percent of the music industry have agreed to the contract terms that include provisions for the subscription service. But YouTube will apparently not let the 10 percent that have resisted carry on as ad-supported-only videos, and Kyncl told
FT that the blocking will begin in a matter of days.
The news of the subscription service and YouTube's tense relationship with indie labels comes just weeks after The Information reported that Vevo, a video-hosting service centralized on YouTube that deals primarily with major musical artists,
is up for sale. Vevo, which is owned in part by Google, Universal Music Group, and Sony Music Entertainment, splits its YouTube ad revenue between the investors.
The
Financial Times reports that the 10 percent soon to be cut out of YouTube if they don't sign up with the new contract terms are fighting back through
Impala, the "independent music companies association." Impala has made a plea to the European Commission for assistance, stating that YouTube is abusing its dominant market position. Google will start internally testing the subscription service in the next few days,
FT says, with a launch time frame of late summer.