AIR joins ranks in fight over YouTube terms

The Australian Independent Record Labels Association (AIR) is among 19 global organisations lending its voice to a serious dispute with YouTube over contracts for its forthcoming subscription service.

YouTube has been accused of “commercially questionable” terms and conditions, sending labels a non-negotiable "template" contract which apparently coerces signatures by threatening to block indie music videos.

Indie label trade association Worldwide Independent Network (WIN) released a statement expressing its disapproval yesterday to a small number of media outlets including Digital Music News, although failed to send it on general release when YouTube hinted at the prospect of re-negotiation.

AIR General Manager Nick O’Byrne told TMN that YouTube’s strong-arm tactics will prove detrimental.

"It’s just crazy that YouTube doesn’t see the value in independent music at a time where we’re seeing indie artists so frequently cross over into the mainstream and we’re continuing to see record high market share for indie labels around the world. Yet here we have YouTube attempting to bully the sector into deals that will eventually destroy the businesses of these labels.

"Make no mistake that YouTube’s music services will fail without independent music; its approach to working with the independent sector is old-fashioned, greedy and short-sighted."

David Vodicka, Vice President of WIN and Chairman of the board of AIR said: “It seems obvious that a streaming/subscription service from YouTube is imminent and if the offering does not house the indie sector YouTube is plainly making the claim that this sector holds no value for them.  In an age where New Zealand artists spring from the very independent ethos to achieve worldwide acclaim, it makes no sense for YouTube to pursue the tactic of exclusion.”

YouTube spoke directly to The Guardian journalist Stuart Dredge, responding with the following statement: "YouTube provides a global platform for artists to connect with fans and generate revenue for their music. We have successful deals in place with hundreds of independent and major labels around the world, however we don’t comment on ongoing negotiations."

While YouTube hasn’t officially announced its streaming service, rumours have been swilling online since March. The New York Post reported YouTube would charge $5 a month and name it Music Pass.