The internet. There are those who see it as their enemy as they watch their work merrily distributed online without approval or payment.
Others have taken a different view. The internet, they argue, has become a democratic forum where they can demonstrate their talents, hone their skills and reach a worldwide audience without needing a record company.
Whichever viewpoint you take, the rise of YouTube since the beginning of last year has been a topic of particular interest. Many unsigned or aspiring musicians have uploaded their work onto the site to find an audience or to publicise their work, some of them with remarkable success.
But at the same time a large amount of music has also been uploaded onto the site without permission, often by consumers unaware of copyright law. And, even though YouTube maintains that it gives no permission for material infringing copyright to be uploaded and has removed material on this basis, since its foundation it has found itself in regular conflict with content creators.
But in August YouTube and the MCPS-PRS Alliance signed an agreement that marks a turning point in the way online operators deal with musical creators. Under the deal, the Alliance granted a licence to YouTube covering the more than 10 million pieces of music it represents in the UK. It is the first time a collecting society outside the US had reached such an agreement with YouTube.
The deal could set a marker for how online sites and creators can collaborate to their mutual benefit in future. At the very least, it marks a key stage in the development of YouTube, one that could turn it from a slightly wild and unpredictable entity into something more resembling a traditional broadcaster.
In an exclusive interview with M, YouTube’s co-founder and Chief Executive, Chad Hurley, said the licensing deal marks an indication of how important the music industry has been to the spectacular rise of his site, and said he believed both the site and creators of music have a great deal to gain from working together.
‘Music is one of the most important aspects of YouTube,’ he said. ‘It has allowed the site to grow in ways we never imagined. We’ve witnessed both musicians and record labels successfully promote existing and new content, gain visibility and grow audiences.
‘Music quickly became an extremely popular category on YouTube. Bands found a great way to showcase their creativity and personality, and music videos are a great format for our users. We’ve also seen some of our most popular users, like Esmee Denters, grow, get discovered, and get signed in a short period of time.
‘We see YouTube’s music content as a key element to aid in the discovery of new artists and to increase the fan base for established artists. Towards that end, we’ve signed deals with the four major US record labels, as well as many smaller independent labels.’
However, Hurley does not accept that the new licensing deal means YouTube is becoming a broadcaster. ‘YouTube provides a platform for our users to share and distribute content. Rather than broadcast our own content, we provide the platform for individuals and companies to broadcast themselves.
‘Many of our users and partners are media companies or traditional “broadcasters”. They have found unique ways to take advantage of the platform and engage the community.
‘Our music partners are extremely important. They see the value in promoting their content on YouTube, and we will continue to work with them to engage our audience and grow theirs. Working with our partners, we must continue to identify ways to compensate artists for their creativity. The question is how to do it successfully online.’
Doing things successfully online does not look like a problem for 30-year-old Hurley, whose dramatic success has made him one of the legendary figures of the internet in just two years. After joining the nascent PayPal straight from college in 1999, designing the company’s logo along the way and walking away with a substantial sum after the company was bought by eBay in 2002, Hurley and a couple of fellow PayPal engineers came up with the idea behind YouTube in late 2005.
Their site swiftly became the internet sensation of 2006. Its easy accessibility, slightly edgy feel and unhyped viral character drove it rapidly to become a ubiquitous and global phenomenon, to the point where ‘YouTubing’ has begun following ‘Googling’ as a widely accepted term in common speech.
That turned out to be a striking coincidence. Last October Google agreed to buy YouTube for $1.65 billion, making Hurley considerably richer but also confronting him with a new set of challenges. Now Chief Executive under Google’s ownership, Hurley - and the website he founded - have entered a new stage, one in which the site’s edgy, slightly underground approach may no longer be the most appropriate way forward.
'music has allowed the site to grow in ways we never imagined'
The company’s new approach was signalled by the fact that, shortly before the deal with Google, YouTube made a number of agreements with content creators in the US over content and rights. First it announced a partnership with NBC to promote the network’s shows on the site. Then it sealed agreements with CBS and music companies Sony BMG Entertainment and Universal Music Group to show video from those companies’ libraries, with the companies sharing advertising revenue with YouTube. It also announced an online video deal with Warner Music Group.
As if there was any doubt about the shift in approach, Hurley said at the time that the deal with Google would allow YouTube to focus on copyright protection.
Hurley is convinced the blend between YouTube and Google is a natural fit. ‘We partnered with Google because our culture and perspective matched so well,’ he said. ‘Having said that, we enjoy a certain independence that empowers us to maintain the most entertaining and innovative video experience online. Google’s resources and technology leadership will provide us with the flexibility to expand and improve that experience further.
‘Google and YouTube share the vision of enabling anyone to find, upload, watch and share original user-generated and premium videos worldwide, and the dedication to innovate with video to offer compelling services for our users. Together we can bring better content and product features to users. With Google resources, YouTube will continue to innovate and build world-class services for their users and communities.’
But a year is a very, very long time on the internet, and the online world has moved on once again since the tie-up between Google and YouTube. Hurley’s site may well have been the talk of 2006, but the internet phenomenon of 2007 has undoubtedly been the rise of Facebook.
Originally launched among students at Harvard in 2004, Facebook opened up to anybody with an email address in September 2006, and its expansion since then has been remarkable. Its sudden ubiquity has already brought a whole new set of challenges to established sites like YouTube, with no doubt plenty more to come.
Facebook now offers users the chance to customise their profile and embed other music services. This kind of rapid technological innovation is likely to pose ever-greater challenges to the YouTube model.
Hurley says his company is ready for any such challenges thrown up by the growth of social networking or other sites. ‘Our focus is on providing the best possible experience for our users and we have always allowed our users to embed content onto their websites and social networking pages. Our system is essentially an open one.
‘The online world is still very young. We all need to continue to experiment and try new techniques in this space. Musicians need to pay attention and communicate directly with their audience, and many of them are doing just that. On YouTube, content that is compelling, unique and tailored to the community has a good chance of being successful.
‘Video delivers an emotive way to connect with music and artists. YouTube’s music channels allow artists to exploit this experience. We continue to look for new and innovative options for our users and partners. Most importantly, we provide the platform for our users to take the experience in directions that we can barely imagine today.’
And what does that mean for musicians? Is there a prospect of closer collaboration between YouTube and content creators, particularly in the area of rights?
Hurley believes new answers to the ongoing issue of rights will emerge as the online world develops. ‘The industry is still young and we believe that marketplace innovation can lead to creative solutions we can’t even begin to imagine today.
‘We support the goal of collaboration between video-hosting services and rights owners to reduce infringing content posted by users. We believe, and our current partners agree, that we can help music companies evolve, build their audience and establish new revenue streams, enabling us to enjoy a symbiotic relationship.’