Google announced agreements with Warner Music Group and Sony BMG Music Entertainment to stream their artists' music videos free of charge, supported by advertising through Google's AdSense network. The news came as reports circulated that Google was preparing a $1.65 billion acquisition of video-sharing site YouTube, possibly to be announced the same day. Neither Google nor YouTube would confirm the speculation.
The licensing arrangements were seen as a way to address copyright concerns surrounding YouTube, whose users had been accused of widespread unauthorized posting of protected material. Under the deals, participating record labels and Google would share revenues generated by ads placed alongside the videos. Selected Warner Music Group videos would also be available for individual download purchase at $1.99 each.
Sony BMG's Thomas Hesse described the Google partnership as central to his company's effort to develop new revenue streams and connect artists with fans. Warner Music Group had previously disclosed talks with YouTube in August, and reports at that time indicated Universal Music and EMI were exploring similar arrangements.
YouTube, founded in February 2005 by three Silicon Valley veterans, had seen its audience quadruple between January and June of that year, according to Nielsen/NetRatings, giving it roughly 60 percent of the online video market.
Historical summary. TurkishPress restated this wire report, first published in October 2006, in its own words.