Warner Music's Led Zeppelin in Concert

Warner Music Group’s decision to take down videos and music on Google’s YouTube reflects the music industry’s frustration that video sharing on the Internet still isn’t paying off.

Warner Music, says the Wall Street Journal, had expected to garner more advertising revenue from the video site — proof once again the big audiences doesn’t necessarily guarantee big revenue. YouTube earns only about $200 million this year, a tiny fraction of Google’s total revenue.

Google pays licensing fees to music companies when users click on advertising content. But clearly, online video has a long way to go before it pays its way for Hollywood content.

Posted under Michael's Blog