Andre Yoskowitz
30 Dec 2008 20:09
According to a Financial Times report, the Big 4 labels are strongly considering building a streaming video site that will directly compete with market share leader YouTube.
The site will be modeled after the very popular Hulu service, which shows full TV episodes and movies with minimal advertisements.
Warner Music recently pulled their music videos from YouTube after contract negotiations fell through. Currently, the Big 4 labels get a fee each time one of their videos is played, but Google (owner of YouTube) wants to reduce the fees and instead share more of the ad revenue.
EMI, Sony and Universal are still in contract negotiations with YouTube but may pull their videos as well if terms can't be agreed upon.