YouTube reaches music deal with Sony, Universal

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Universal Music Group has reached a global, multi-year agreement with YouTube, the companies announced on Tuesday, giving the video platform licenses from all three major record companies before the holidays. Universal says the agreement gives artists better deals. The contracts set royalty rates for music video rights holders, but also commit YouTube to more aggressive anti-piracy action on its platform. The deal also grants UMG the ability to put content behind YouTube's paywall, potentially making some music available only on the YouTube Red service and not on YouTube's free tier, a source tells Billboard.

Sony, Universal, and Warner are all on board for YouTube Remix.
As a result, the video service will reportedly look to crack down on user uploads of copyrighted music in an effort to increase revenue for music labels, which has always been a point of contention in the industry.

Following Google Play Music and YouTube Music, Google is expected to launch its third streaming service at some point in 2018. The music industry wasn't happy about users who upload videos that contain unlicensed songs, but with 300 hours of video uploaded to the service every minute, it wasn't easy to police. Yet the site and its parent company Google, a unit of Alphabet Inc., have struggled to persuade consumers to pay for music.

Universal and Sony operate both recorded music and publishing divisions, and their label groups represent both in negotiations with YouTube. But to do that, it needs to work out new terms with labels.

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