YouTube, EMI Group Enter Video-Sharing Deal
The companies said Thursday that YouTube users would be allowed not only to watch and play authorized videos and recordings from EMI artists including Coldplay, Norah Jones and David Bowie, but also to incorporate elements of the videos in YouTube users' own "user generated content."
"With this deal, all four of the world's major music companies are now official YouTube partners," Chad Hurley, chief executive and co-founder of YouTube, said in a statement.
Following news of the deal, Google's shares rose above $500 for the first time in five months. EMI shares were little changed in London trading.
The deal follows copyright lawsuits filed by media companies that accuse YouTube of allowing its users to pirate their programs on the popular video sharing site.
Though YouTube has had talks with media companies, they have not all been convinced by its claims that the site will be able to efficiently identify and remove illegally uploaded video clips by its users. In March, Viacom
London-based EMI, the No. 3 music company, is the last of the four major record companies to sign a deal with YouTube. The statement from the two companies said EMI will use the YouTube content management system to help the music company track its content and pay its artists. No financial terms were disclosed.
Last year, Warner Music Group