We covered the subject of Google’s row with PRS for Music over YouTube music videos in yesterday’s Music Ally Report, but we thought it was worth pulling out the information on the original licensing deal struck between the two companies. Music Ally understands that YouTube’s existing deal with PRS was based on an upfront fee, NOT based on usage. This was because the agreement was reached prior to the JOL in 2007, and also because at the time, YouTube claimed it was unable to supply detailed data on actual usage.It explains a lot about the current row: if PRS for Music is seeking to include a per-stream element in the new licence, it could mean a huge increase in costs for YouTube.Yet from PRS’ point of view, Google probably got a great deal first time round, given the subsequent explosion in usage on its video-sharing site, so it will be keen to secure a better deal now for its members.
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