Reports claimed that Youtube is biased when it comes to the music industry as they are favoring the big time music producers than the small music producers. This makes it harder for small time music industry to penetrate the business. Youtube believes that the small time industry brings vast catalogues, a disordered supply chain, and a lower average value per track.
The Indies claimed that they are capable of producing high quality new recordings like their major counterparts, and they can do this with more diversity, if the administration will provide more incentive. They don’t like what Youtube said about any individual recording is worth more or less depending on the size of the corporate entity that sells it.
The two parties might agree on something someday, but that will certainly take time. YouTube must treat all music producers alike, even if they are big time industries or small time industries. Independent producers can also create quality music if they want to. YouTube can’t deny that the skills and investment that each producer put into it, are masterpieces, as well.
How YouTube manipulate the content funnel model to their preference
A music producer that doesn’t have the rights in their recordings uploaded their work on YouTube, accepting any revenue that their video makes. Any business that wants to itself as an agent only need to invite musicians who are less likely to give up a share of their revenue from YouTube or from any source of income.
Youtube would just ensure the balance of risk and reward had more advantage in a deal offered to anyone who signs up. Since there is little information provided about value of any recording, no one can say how much the future revenue could be, so the music producer can’t argue that each listen or view should have a minimum fee attached.
YouTube has no plans in paying for many recordings right before they are finished. Rival platforms don’t like to carry its content, which means that a large portion of people might not have access to it.
It is pretty obvious, but that is how it goes and no one can argue about that. Intermediaries can only demand advance funds for production, bring organizational skills), and when they use their access to the whole market, as well as how they negotiate better terms than what are offered by random uploaders. If that is the case, they will have the money to invest in better supply chain management, thus, cooperating with YouTube and other platforms will be easier in finding and focusing interest in the music industry.