> ## Content Index
> Fetch the complete content index at: https://www.hypebot.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# Details Emerge Of Major Label Deals with YouTube and How They’ll Hurt Artists
- URL: https://www.hypebot.com/details-of-the-major-label-deals-with-youtube-music-and-how-theyll-hurt-artists/
- Published: 2014-06-18T11:00:00.000Z
- Updated: 2014-06-18T11:00:00.000Z
- Description: Thanks to the escalating war of words between the independent music community and Google over royalties to be paid by their pending YouTube subscription music service, we're also getting some. Continue reading [https://www.hypebot.com/hypebot/2014/06/details-of-the-major-label-deals-with-youtube-mus
- Author: Bruce Houghton
- Tags: Indie Music, Major Labels, Music Business, Streaming, YouTube & Video, YouTube, #wp, #wp-post, #Import 2026-01-21 10:38

[![YouTube](http://hypebot.typepad.com/.a/6a00d83451b36c69e201a511d01df8970c-120wi "YouTube")](http://hypebot.typepad.com/.a/6a00d83451b36c69e201a511d01df8970c-popup?ref=hypebot.com)

Thanks to the escalating war of words between the independent music community and Google over royalties to be paid by their pending YouTube subscription music service, we're also getting some details as to what the new deal between YouTube and the three major label groups looks like.

Ignore those who suggest that YouTube paid a $1 billion advance to the majors. But the details shared by American Associatian of Independent Music (A2IM) president Rich Bengloff and how they hurt artists are far more likely:

"Universal Music makes the **per-stream rate as low as they possibly can** so they have to give the artist very little money,” he told [Billboard](http://www.billboard.com/biz/articles/news/indies/6121566/rich-bengloff-on-a2im-indie-week-youtube-licensing-alleges-majors?ref=hypebot.com). “Then, on top of that, they have something called a **'listener hour guarantee,**' which they know is going to up their compensation by about 40% – since it’s per listener hour, not per track, the artist gets screwed because it’s not attributable to a track, **so the artist doesn’t get a royalty**… The third thing they do is get a **minimum annual guarantee or an advance** if they know the service isn’t going to reach that level of business and be able to recoup – **it’s what’s called breakage and they also don't share that with the artists.**…Who said that if **Koko Taylor**, who is an eight-time nominated Grammy artist, and **Justin Bieber** release a song, that they should get paid differently?”

Related articles

[![](http://i.zemanta.com/276204394_80_80.jpg)](https://www.hypebot.com/you-tube-battle-escalates-indies-turn-to-european-commission-for-emergency-assistance/)[You Tube Battle Escalates, Indies Turn To European Commission For "Emergency Assistance"](https://www.hypebot.com/you-tube-battle-escalates-indies-turn-to-european-commission-for-emergency-assistance/)

[![](http://i.zemanta.com/227857366_80_80.jpg)](https://www.hypebot.com/youtube-deletes-billions-of-fake-views/)[YouTube Deletes Billions Of Fake Views](https://www.hypebot.com/youtube-deletes-billions-of-fake-views/)

[![](http://i.zemanta.com/279353449_80_80.jpg)](http://www.musicweek.com/news/read/youtube-to-cull-indie-music-videos-within-days/058738?ref=hypebot.com)[YouTube to cull indie music videos 'within days'](http://www.musicweek.com/news/read/youtube-to-cull-indie-music-videos-within-days/058738?ref=hypebot.com)

[![](http://i.zemanta.com/215741290_80_80.jpg)](https://www.hypebot.com/5-things-to-expect-from-youtubes-music-video-subscription-service/)[5 Things To Expect From YouTube's Music Video Subscription Service](https://www.hypebot.com/5-things-to-expect-from-youtubes-music-video-subscription-service/)