Does YouTube Deal Signal P2P Licensing?

Filed in archive Commentary on October 24, 2006

Entertainment business attorney and consultant Bob Lefsetz thinks so. He credits Edgar Bronfman, Jr. with breaking the hard music party line on licensing and starting the YouTube deals (Warner Music Greenlights Viral Video) that provide licensing in exchange for a share of ad revenues.

Even though Time Warner CEO Dick Parsons rattles his sabre now that YouTube has been Googled (If a Song is Played in the Forest, Does It Make a Sound?), Lefsetz says:

Yes, now is the time. For Edgar Bronfman, Jr. to authorize a P2P service. He should take an ownership position. And allow trading of Warner product.

Watch the rest of the sisters fall into place.

And then we might have what we COULD HAVE HAD in 2000. A way for more people to get more music for less money. Making music exciting again. Getting everyone to participate. Building acts.

It's not the distributor's move. It's not the venture capitalist's move. It's the INDUSTRY'S move. SOMEONE has got to open the gates. And feed those iPods. It's happening already, just illegally. As YouTube has been functioning for a year. Having seen the light, can't Edgar start the ball rolling on a new acquisition paradigm? One the Street he's beholden to will understand? One their kids will UTILIZE?

It's time to square business policy with reality.

No one interested in buying music is listening to Mitch Bainwol.

Stop the insanity and give the people what they want. A ton of unprotected MP3s at a low price.

I hope he's right. People both in and out of the industry, including me, have been preaching this position for 10 years now.