YouTube has reached an agreement with Universal Music Group, underscoring the online video site’s commitment to the music management industry. Google shares closed lower Tuesday but are set to open in the green Wednesday. Google is YouTube’s parent company.
By 1420 BST, Google shares were poised to open higher at the start of the US trading session.
The YouTube, UMG deal is reported to be a multi-year deal and likely fits well with the video sharing site’s plans to expand its subscription services.
“We’re thrilled to strengthen our partnership with Universal Music Group. This agreement means we can drive more value to the industry, break and support more artists and deliver an incredible music experience to fans around the world,” said YouTube CEO, Susan Wojcicki.
Meanwhile, UMG was equally upbeat on the deal.
“This important step forward provides our recording artists and songwriters improved content flexibility and growing compensation from YouTube’s ad-supported and paid-subscription tiers, while also furthering YouTube’s commitment to manage music rights on its platform,” said Lucian Grainge, UGM chairman.
“I look forward to collaborating with Susan and her team at YouTube on the important work ahead to advance artists’ interests and sustain the music industry’s recent growth,” Grainge added in his statement.
The deal follows an agreement earlier in 2017 between YouTube and Warner Music Group. In addition, reports from Variety and Bloomberg suggest a deal with Sony is also imminent. Although, there are no official comments on that.
Amazon, Google rivalry continues
While YouTube gets more plans in place for its future strategy, Google rival Amazon, is said to be mulling the creation of its own online video sharing site.
In the latest disagreement between the two global businesses, Google has withdrawn YouTube from Amazon’s Echo Show and FireTV as the two tech giants struggle to work together.
Reports show that Amazon filed for trademarks with the US Trademark and Patent office, for “Amazon Tube” and “Open Tube”.
The descriptions attached to both are similar to that of YouTube.