Posts Tagged ‘ youtube ’

Major record label in financial crisis after teen uploads music track to YouTube

Music company Warner Music Group is in severe financial trouble after a teenager uploaded a track to video sharing website YouTube, it has emerged.

On 13th June, 2011, 14-year old Jordan Smith uploaded a videogame montage to YouTube which featured the track Hysteria by Muse as background music. This has led to mass disruptions to content owner WMG’s business due to the fact that music fans can now listen to the track for free in Jordan’s video instead of paying money on a service such as mflow or iTunes for the song.

Jordan first became aware of the damage his low-resolution video was doing to the music industry when WMG filed a copyright claim on his video. He soon disputed this claim, saying that he felt that featuring the song would encourage fans of his videos to buy Muse albums, however this was rejected and his video was removed.

A representative from WMG said “I find it appalling that today’s youth find it acceptable to deliberately damage our business like this. The fact that his video is playing the song to a massive audience who weren’t even aware of the band’s existence beforehand for free has meant that we have lost a significant number of sales which is leading our business into crisis.”

“We feel it is necessary for young people to be aware of how their online actions can damage entire industries like this, and that as the bands themselves only receive a very small cut of the sales money it is important that their albums sell in large numbers to make it worth their while to keep making music.”

Flamenews will keep you updated.

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