YouTube has made its priorities clear — television is where it’s at. And, perhaps as a result, over the last few months, other areas of YouTube’s business have been taking hits — from concerns about brand safety to the ongoing issue of copyrights, rights management, and the famous YouTube “tax” for music licensors. And, despite YouTube’s billion-dollar payout to labels in early December of 2016, the music labels still claim it’s not enough.
This opens significant opportunity for alternative distributors like Natcom and Dailymotion, which was acquired by Universal Music Group-parent company, Vivendi. And now, one of the most prominent labels Warner Music Group is looking elsewhere for distribution and monetization opportunities, with lesser-known Natcom Global.
Using Natcom’s various services, which include production and global distribution via its own media player Vidweb, WMG will make available its existing video library from artists like Madonna, Cold Play, Ed Sheeran, and Wiz Khalifa and create new IP in collaboration with the multi-platform network. They will also share revenues based on advertising to start and later evolve into a direct-sales relationship on behalf of WMG.
“Music is one category that continues to do extremely well on digital platforms. Our entire focus is to broaden the audience and monetize it strategically through multiple platforms by providing partners new and compelling content capabilities, additional monetization and proprietary video distribution technologies,” Natcom CEO Robert Rodriguez to VideoInk.
Rodriguez claims this advantage for publishers, music or not, is the result of its “proprietary video player Vidweb and direct access to major distributors like Amazon, AOL, Terra and VideoElephant.
“Certainly we see a lot of value in underutilized video IP. We believe that almost any valuable IP today has a lot of potential in the digital video first world,” he said, also noting that Natcom carries nearly 10,000 pieces of original video in its own library. “With WMG we see ourselves as a strategic partner in the leveraging of IP and enhanced distribution and monetization initiatives.”