Posts tagged ‘YouTube – PRS’

March 10, 2009

YouTube flex their muscles

YouTube has had several years of dominating the Internet landscape with huge chunks of their content infringing copyright while simultaneously sticking two fingers up at the record companies. It was rather like Robin Hood – satisfying the needy while screwing  the bigwigs. Now the tables have turned…..
I suspect we are now entering a different phase of digital society. The famous gunslingers of the wild-west are now kings of the castle and sitting on a fortune (well parent company Google are), no longer content with persevering with their altruistic methods – we may see a radical overhaul of the Internet system for watching and streaming music. Now the key players have created demand and established their brand – entrenched their importance in a relatively new and unlimited market – we will see a slight shift in ideology.

Quite clearly the current model is not earning YouTube enough money or they would be willing to pay the Performing Rights Society the required fees.  The reluctance and subsequently slow facilitation of advertising on these sites has created little demand among the advertisers.  Now sites like YouTube are getting millions of viewers on a daily basis you would think the advertisers would be queuing to sign up.  Not so…..That initial reluctance to embrace the advertising world  has created a disinterest among many major companies – who are now unwilling to offer premium advertising rates.   Which could lead to a YouTube style subscription service or a similar type of model. 

With a global community of millions, YouTube could feel now is the time to act and utilize their popularity.  No one know’s who is to blame for this self-imposed embargo – whether it’s YouTube offering less or PRS asking for more isn’t the big issue,  we have now seen YouTube exert its huge digital influence in a gesture that’s sure to panic the industry.  Now they’ve mobilised their power we are sure to see them use it.