New Model for the Old Model Recording Boys

83815753

New Model for the Old Model Recording Boys

It seems like YouTube is finally emerging with a business model, well, I don’t know if its for YouTube, or for others. Universal Music seems to be generating a substantial piece of change from its partnership with YouTube:

“(YouTube) is not like radio, where it’s just promotional,” said Caraeff, who heads up Universal’s digital group. “It’s a revenue stream, a commercial business. It’s growing tremendously. It’s up almost 80 percent for us year-over-year in the U.S. in terms of our revenue from this category.””(YouTube) is not like radio, where it’s just promotional,” said Caraeff, who heads up Universal’s digital group. “It’s a revenue stream, a commercial business. It’s growing tremendously. It’s up almost 80 percent for us year-over-year in the U.S. in terms of our revenue from this category.”

This is encouraging for the recording industry, as the old model of CD’s are dying, and record labels need to find creative/new ways to market their products. For 2008, Universal Music artists dominate the most watched viewed videos on YouTube; and Universal shares the advertising revenue with YouTube. Last week, Warner Music canceled a partnership agreement with Youtube over copyright issues. What Warner music needs to understand is that in this day of age, vigilantly trying to protect the availability of ‘free music’ will have adverse side effects; labels need to embrace the digital technology, as Universal Music is saying that Youtube is actually increasing its album sales.

Hopefully, the other record labels will get hip to this trend, and find better ways to market their music than on an oddly shaped plastic disc.

.:: LiBM ::.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>