Will music return to YouTube?

You will have noticed that it hasn’t been possible to watch music videos for ‘free’ on YouTube recently and other free ‘streaming’ music sites like Pandora have not been available either. That gave Spotify a chance to break into the music market with its own business model.

Now the organisation responsible for collecting revenues from broadcasters on behalf of the music business, the PRS, have unveiled a new pricing plan it hopes may entice YouTube and Pandora back to the UK market. From 1 July 2009, firms will have to pay 0.085p for each track streamed, down from the previous rate of 0.22p.

According to the BBC, PRS for Music say the new plan will “enable the digital market to grow”. Earlier this year, YouTube started removing premium music videos to UK users after failing to reach a new licensing agreement with the PRS. Companies wishing to play or stream music over the internet are legally obliged to pay royalties to the artist, enshrined in the Copyright, Designs and Patents Act 1988.

The radio streaming service Pandora ended its UK stream at the start of 2008 and YouTube announced in March 2009 that it was removing all premium music videos to UK users after failing to reach a new licensing agreement with the PRS. The PRS collected a record £117 million in the first three months of 2009.

You can read more on this story from the BBC here.