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UK Music Biz Labels Google ‘Cynical And Exploitative’

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imageLooks like the animosity isn’t subsiding. UK Music, an umbrella representing a smorgasbord of industry bodies, has released a statement calling Google (NSDQ: GOOG) “cynical and exploitative”. The statement isn’t signed by UK Music CEO Feargal Sharkey - but, for anyone who has heard the ex Undertones’ frontman’s keynotes, it’s got his upfront, pro-artist imprimature all over it…

SEE ALSO: Why YouTube’s PRS Spat Is Just One Battle In The Coming Online Music War

Highlights of the statement: “Without this high quality raw material ... sites such as YouTube would be somewhat less compelling. Demands that our creative talent should subsidise someone else’s business model is as unreasonable as it is inappropriate. Licensing embryonic start-ups has brought significant challenges to all creative businesses. Google, however, qualifies as neither embryonic nor a start-up. In 2008 alone, the internet search giant recorded profits of over £3 billion. In this light, it is difficult but to interpret Google’s actions this week as anything other than cynical and exploitative.”

The statement said Google’s decision to block thousands of pieces of music on its site in the UK constituted “unheralded and counter-productive negotiation tactics”. This language ups the ante in the PRS-YouTube negotiations because UK Music represents all the key music biz orgs, including PRS itself, which has stuck to its largely respectful statements, and the British Phonographic Industry labels org. But, with negotiations between PRS and YouTube continuing in private, the statement may also prove as detrimental as Google’s own actions earlier this week.

(Photo: ourcreativetalent)

Mar 13, 2009 8:30 AM ET

Posted In: Entertainment, Music, Companies, Google, YouTube

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