Following Pandora, Spotify and Beats, now YouTube is the latest company to announce a streaming service. But this does not come without much controversy.
Although some major labels have signed on for YouTube service, reportedly set to launch in a few months, independent labels have given push back because they don’t believe the deal is equitable for their artists. Furthermore, YouTube’s tactics could be considered bullying by some as they have threatened songs from the site if they are not part of the agreement.
“It’s sort of a dirty secret that people go to listen to music on YouTube because you can find any song there and it’s easy to do. SO they want to sort of seamlessly integrate it into that experience. And what they are offering in terms of royalties are not only lower than Spotify, but very low in general. While the major labels have signed up with it, they are offering non-negotiable contracts to smaller labels,” said Will Garcia, President of King’s Head Records said.