YouTube Reaches Deal With UK Music Society on Royalties
By Rafat Ali - Wed 29 Aug 2007 01:55 PM PST
YouTube (Nsdq: GOOG) has done an agreement with MCPS-PRS Alliance, the music collection society in UK, under which the society licenses 10 million pieces of music to YouTube, in return for a flat fee which has not been disclosed. This is the first such deal YouTube has done worldwide with a music royalty society, reports FT.
After YouTube pays a blanket fee to the MCPS for music to be used in its partners’ professional sites and in amateurs’ videos, the alliance will decide about how to distribute the revenues to its members based on an estimate of what music has been played on the site. The alliance will also work with YouTube to find ways on how to monitor music usage...because of the volume, they would concentrate on the top 5 or 10 per cent that attract the highest audience.
As to how much will the fee be, see this recent MCPS decision on royalties for online usage.
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