YouTube’s music streaming service has been delayed thanks to indie labels

There have been rumors since 2013 that YouTube could be planning on launching a music streaming service of their own. Given the popularity of such services, we can definitely see the appeal. Unfortunately since the rumor in 2013, we have not heard about it since, with a report in December 2013 suggesting that the launch of the streaming service has been delayed. So why is this? What could be the hold up? Well according to the New York Times, the reason behind the delay is because Google, YouTube’s owner, is having some contract disputes with indie music labels.

YouTube’s plans for a subscription music service have stalled over a dispute with independent record labels, which contend that the online video giant has offered unfair licensing terms and threatened to block their music from the site. In a strongly worded statement, members of the Worldwide Independent Network, an umbrella for various trade groups around the world, complained on Thursday that the contracts YouTube had offered independents are “out of step with the marketplace for streaming,” and less favorable than those that have apparently been agreed to by the three major labels — Universal, Sony and Warner. Independents and YouTube, which is owned by Google, have dragged on for months. But according to several people with direct knowledge of the talks, the indies’ decision to speak out was driven by a recent warning that if labels failed to agree to YouTube’s licensing terms, music on the indies’ official YouTube channels would be blocked. In addition, those labels would be unable to collect advertising revenue from user-uploaded videos that included their music.