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NEWS: Youtube’s New Deal Concentrates on Transparency With Artists

Youtube and AMRA have agreed to a deal that grants musicians more access to information, and in turn, control over their earnings from their videos. ARMA, “a global digital music collection society,” looks to put the artist first with extreme care and communication. On its site, their services are strongly and proudly defined: guaranteeing their clients faster and higher compensation, full access to data including rates and fees in real time, and the ability to administer and secure billions of micro-transactions “directly and efficiently in today’s complex digital landscape.” “This deal is hugely significant for the music industry… It will dramatically change the way songwriters get paid from YouTube, which is the largest streaming service in the world,” affirmed the founder and chief executive of Kobalt, Willard Ahdritz, which helped pick up AMRA earlier this year.

With a music industry desperate to find new methods of making money off of music and its artists, this comes at crucial turning point; last year, sales of physical copies of music and sales of digitial music reached a virtual tie. “This regional approach creates glaring inefficiencies for all sides,” AMRA chief executive, Tomas Ericsson, states. He continued by emphasizing that digital platforms face the test to clear licenses locally, while the rights holders endure an “increasingly complex and fragmented collections process, causing needless delays and often inaccurate reporting.” Ahdritz added that rougly 70 percent of revenues from music streaming can be misplaced before ever getting back to the license holder because of “collection costs, broken links in the payment chain or a lack of transparency over what is owed.”

Regarding what AMRA and Kolbalt takes from this deal, Kolbalt takes a single-digit percentage from its clients, which range from new-generation artists like Maroon 5, Skrillex, and Toro Y Moi, and old-schoolers like Dave Grohl, Lionel Ritchie, and Paul McCartney. ARMA per transaction fees rights owners a flat rate. Apple Music agreed to a similar contract with AMRA when it came on the scene earlier this year, which brings into question, did Taylor Swift actually do something of significance when calling out Apple Music?

With or without T-Swift’s “guidance,” Youtube seems to be headed the right direction in the producer aspect, despite a lot of recent falling outs of their new paid subscription-service for consumers, Youtube Red. The service is supposedly set to “compete with Netflix and Spotify at the same time.” With a supposed $1 billion in revenue from music in the last couple years alone, Youtube’s global director of music partnerships, Christophe Muller, suggest the deal with AMRA is a big step to establish that artists, songwriters, and publishers get the fullest of what they put out on Youtube.

(H/T): The Telegraph