Mark Cuban posts details of the Google/YouTube deal with the major labels via an email from an anonymous digital media veteran.
Techdirt breaks it down:
• The deal was an investment, not a licensing agreement, meaning all that cash the labels got they don’t actually need to share with the artists they always claim they’re trying to protect. This was done on purpose.
• While Google and YouTube have apparently put $500 million in escrow to deal with copyright lawsuits from smaller players, handing over cash to the labels came with a promise that the labels wouldn’t sue YouTube for at least six months.
• At the same time, they would sue other players in the space — which we’ve already seen from Universal Music.
Add it all up, and you get the music labels effectively taking a bribe to cause trouble for Google/YouTube video competitors, ignoring YouTube to let it grow for a while, and pocketing all of the money without giving it back to the artists they supposedly represent.