Youtube and PRS Reach Licensing Agreement over Online Music Videos
Youtube and the PRS had failed to reach an agreement over licensing fees and as such, a ban was put in place from March of this year (2009). YouTube will pay an undisclosed lump sum to PRS, backdated until January and going through until 2012.
Social media website YouTube and the Performing Rights Society of Great Britain have finally found their way out of the deadlock which saw UK users unable to watch music videos of performers.
PRS spokesperson Andy Shaw commented on the decision to the BBC saying, “We have 60,000 song-writer and composer members and many of them don’t earn very much money at all - 90% of them earn less then £5,000 a year. The money we receive is really their living.”
The organisation collects payments from businesses, broadcasters and private citizens. However they only receive actual playlists from their largest customers (major radio stations etc) meaning that the vast majority of the money goes straight to major label employees. Most, if not all, independent musicians have day jobs too.
YouTube expects tens-of-thousand of music videos to come back online over the next few days.
“The music videos are an extremely popular part of YouTube and this deal doesn’t only cover the music videos but also music included in TV programmes like the X Factor and also for the inclusion of music in user videos as well,” YouTube’s Patrick Walker told the BBC.
The PRS has come under increasing number of attacks of late due to their perceived strong-arming of the British public. Cases have included the pursuit for royalties of 61 year old mechanic, Paul Wilson, who plays his radio when he works by himself, a bakery that plays a radio in a private room at the back of the shop, and community centres that allow children to sing carols in public. All were told they needed to buy a broadcasting license in their circumstances.
