Posted in: Broadband Video Companies, Deals, Funding & Acquisitions, Legal, DRM, Piracy & IP, Making Money & Web Video, News, Video Distribution, Video Sharing & Video Clips, Video on Demand, YouTube by Dave Parrack on March 9, 2009
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Mark Says:
March 10th, 2009 at 6:36 amIt’s not the music industry’s fault that YouTube’s business model doesn’t stack up. The model doesn’t support paying the current PRS rates let alone the payment to artists, because they cannot command high enough advertising rates. Because sites like YouTube are built off the back of user generated content, and have a storied past of allowing ‘illegal’ content to be viewed – brands are resistant to pay premium advertising rates.
MUZU.TV (www.muzu.tv) was purpose built for the music industry with a viable model that protects the CPM by its 100% focus on premium music content. While the industry needs to look at the minimum stream rates to make new business models viable and sustainable it should not let YouTube hold it to ransom.