Elizabeth Moody, YouTube’s head of Strategic Partner Development for music wrote in a blog post that all 46,000 of HFA’s music publishers will now be able to license their music for use by YouTube lovers. Every time a videomaker adds a song to their work, an ad will play alongside the video, scoring money for the publishers and the writers. YouTube also intends to work with HFA to invite other publishers to sign up, even if they are not affiliated with HFA.
This implies that music publishers will get royalties that come from ads that run alongside user-generated videos that incorporate their compositions, and YouTube has agreed to provide them so that publishers can make money. The royalties will be administered by The Harry Fox Agency, an NMPA subsidiary.
NMPA President and CEO David Israelite commented, “We are pleased to have resolved NMPA’s litigation claims and to work with YouTube in providing a new licensing opportunity for songwriters and publishers. This is a positive conclusion for all parties and one that recognizes and compensates the work of songwriters and publishers .”
YouTube’s Content ID system, which identifies the work of songwriters whether the compositions appear in an original sound or in a cover version, will be used to locate applicable content. Content ID is a video identification technology which has a full set of audio and video matching tools that give right holders controls for managing their content if someone uploads it on YouTube.
It would be simple for publishers to opt for this licensing opportunity, wherein the content ID will help them find even more performances of their songs, leading to more revenue. Today, Content ID is used by 2000+ partners, including major US music publisher, record label, network broadcaster and movie studio.
Though this deal is only with the publishers, YouTube believes that it will also benefit recording artists and record labels. Previously, YouTube ran ads alongside videos with commercial music only when the copyright holders for both the sound recording and the composition authorized them to do so. With this new deal, which broadens it’s coverage, it will be able to generate revenue streams for more artists.
“We are excited to be working with YouTube, and our participation in this landmark deal is a testament to our continued commitment to bringing to market innovative licensing solutions,” said HFA President and CEO Gary Churgin.
The agreement reached between the National Music Publishers’ Association and the Google-owned online video platform settles part of a 2007 copyright infringement lawsuit by giving music publishers the ability to receive royalties from YouTube for musical works in videos posted on the site.