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Tuesday, September 19, 2006

YouTube Partners with Warner Brothers

Warner Music Group will distribute and license its copyrighted songs and videos through YouTube in a revenue-sharing deal that will inject needed capital into the young, money poor company. YouTube wants to cut similar deals with other media outlets and already has a deal with NBC to promote television this fall.

YouTube wants to remain independent even though they could probably sell the service for billions right now. YouTube and Warner will make money from the ads placed next to Warner's videos as well as other copyrighted amateur videos. YouTube developed a royalty-tracking system that detects when homemade videos are using copyrighted material and will enable Warner Music to monitor and decide whether to support videos.

posted by Norris McDonald at 5:32 PM

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