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MarketingVOX: Universal, the world's largest music company, has decided that free promotion for their artists via music videos shown on YouTube is actually costing them money, and they are ready to send the internet startup a big bill.
Universal, in a move that could be a sign of things to come from other music labels, is claiming that YouTube owes the label tens of millions of dollars," according to an article in the New York Post. Universal Music chief Doug Morris is quoted as saying YouTube and other sites "owe us tens of millions of dollars. How we deal with these companies will be revealed shortly."
The news comes at a bad time for YouTube, as the online video site is considering offers from buyers, as well as a possible IPO in the future. Any such plans could be put on hold if the threat of future lawsuits is realized.
Universal, as well as Warner Music, EMI and SonyBMG, have all been in ongoing talks with YouTube about licensing arrangements.
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