YouTube multi-channel networks (MCNs) Fullscreen and Maker Studios, whose videos attract around 4 billion views every month, have signed licensing deals with Universal Music Publishing.
The agreement means that advertising revenue generated by advertising on any Fullscreen and Maker video that uses UMPG repertoire will be split between the MCNs, UMPG and its writers.
In exchange, both Fullscreen and Maker will now have access to UMPG’s full catalogue of songs.
Fullscreen’s “FAM” network currently has over 700 musicians on YouTube, many of whom have gained noteriety on the platform by covering famous songs.
Maker specialises in online-only, TV-style content. It is home to content including KassemG, the Shaytards, Snoop Dogg’s WestFestTV, The Yogscast and Bad Lip Reading, among thousands of others.
MCNs like Fullscreen and Maker Studios tend to charge higher advertising rates than more common YouTube videos, with advertisers paying a premium due to the professional-quality content.
“We’re delighted to have reached a groundbreaking arrangement with Fullscreen that validates the important contribution of our songwriters to Fullscreen’s music-based programming on YouTube, and enables Fullscreen to fully embrace the many revenue opportunities our songs help to create,” said Zach Horowitz, chairman and CEO of UMPG.
“We are particularly pleased with the creation of the unique revenue-sharing arrangement for our songwriters in connection with wildly popular ‘cover’ videos that feature their songs.”
Of the Maker deal, he added: “This is a groundbreaking arrangement that encourages the use of our music and unleashes Maker to reach its full potential. We’re delighted to have reached a market solution with Maker that properly pays our songwriters for the use of their work.”Music Business Worldwide
