Warner Music Group signed a deal with YouTube and then complained about it. Here’s is YouTube's response
Cohen says he was surprised to hear Warner CEO Steve Cooper complain about the deal. He says he thinks Warner, and the rest of the music business, want YouTube to succeed at building a subscription music service that will rival Spotify and Apple Music.
And he says the Warner deal will help YouTube sell that service globally — at least in countries where people can afford to pay for music. Those that don’t will generate money via advertising.
The idea is to grow the global music industry pie. Or, as Cohen puts it, to “bring more cake to the party.”
Cohen says he was surprised to hear Warner CEO Steve Cooper complain about the deal. He says he thinks Warner, and the rest of the music business, want YouTube to succeed at building a subscription music service that will rival Spotify and Apple Music.
And he says the Warner deal will help YouTube sell that service globally — at least in countries where people can afford to pay for music. Those that don’t will generate money via advertising.
The idea is to grow the global music industry pie. Or, as Cohen puts it, to “bring more cake to the party.”
Peter Kafka: Normally when someone announces a deal, they say they’re happy they have a deal, and that’s about it. This is the first time I’ve seen someone say “we have a deal and don’t really like it.” Did Warner tell you they were going to put this memo out?
Lyor Cohen: Not at all.
What was your reaction when you saw it?
I was surprised, because it’s not been the context or the tenor of the negotiations. I’ve been in the bunker with them, and I’ve been really impressed with how Steve and his team have been thinking about it. This deal is centered around their vision of helping us build a subscription business. And them encouraging us building the advertising business.
So this deal enables us to continue growing our subscription business around the world. And ultimately, the key to the industry — to them, to artists — is if we can identify those consumers that are most likely to be shepherded to a higher [average revenue per user], that would be great
But when you’re saying this deal allows you to have a subscription business — you already have a subscription business. Is there something else?
The expansion around the world. We need the rights in order to continue expanding around the world.
So you can sell this to someone in India or some territory you haven’t been selling it in.
Yeah. I would think India would primarily be an advertising country before it turns into a subscription country. You know, there are countries that are struggling to feed, house and shelter their citizens. So I doubt that they would be interested in a $120 yearly subscription.
But they may pay with their eyeballs.
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https://www.google.com/amp/s/www.re...938/lyor-cohen-youtube-warner-music-interview
Cohen says he was surprised to hear Warner CEO Steve Cooper complain about the deal. He says he thinks Warner, and the rest of the music business, want YouTube to succeed at building a subscription music service that will rival Spotify and Apple Music.
And he says the Warner deal will help YouTube sell that service globally — at least in countries where people can afford to pay for music. Those that don’t will generate money via advertising.
The idea is to grow the global music industry pie. Or, as Cohen puts it, to “bring more cake to the party.”
Cohen says he was surprised to hear Warner CEO Steve Cooper complain about the deal. He says he thinks Warner, and the rest of the music business, want YouTube to succeed at building a subscription music service that will rival Spotify and Apple Music.
And he says the Warner deal will help YouTube sell that service globally — at least in countries where people can afford to pay for music. Those that don’t will generate money via advertising.
The idea is to grow the global music industry pie. Or, as Cohen puts it, to “bring more cake to the party.”
Peter Kafka: Normally when someone announces a deal, they say they’re happy they have a deal, and that’s about it. This is the first time I’ve seen someone say “we have a deal and don’t really like it.” Did Warner tell you they were going to put this memo out?
Lyor Cohen: Not at all.
What was your reaction when you saw it?
I was surprised, because it’s not been the context or the tenor of the negotiations. I’ve been in the bunker with them, and I’ve been really impressed with how Steve and his team have been thinking about it. This deal is centered around their vision of helping us build a subscription business. And them encouraging us building the advertising business.
So this deal enables us to continue growing our subscription business around the world. And ultimately, the key to the industry — to them, to artists — is if we can identify those consumers that are most likely to be shepherded to a higher [average revenue per user], that would be great
But when you’re saying this deal allows you to have a subscription business — you already have a subscription business. Is there something else?
The expansion around the world. We need the rights in order to continue expanding around the world.
So you can sell this to someone in India or some territory you haven’t been selling it in.
Yeah. I would think India would primarily be an advertising country before it turns into a subscription country. You know, there are countries that are struggling to feed, house and shelter their citizens. So I doubt that they would be interested in a $120 yearly subscription.
But they may pay with their eyeballs.
https://www.google.com/amp/s/www.re...938/lyor-cohen-youtube-warner-music-interview
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