The Canadian Music Reproduction Rights Agency (CMRRA) has struck a deal with YouTube.
The new deal allows the CMRRA to license the copies of audiovisual content made by YouTube in the process of delivering that content to users. This means that each time content is reproduced by YouTube or its users, so is the music used in that content.
Essentially, this is a potential new revenue stream for the CMRRA. The organization, which includes all three major music publishers, is now able to collect royalties on YouTube advertising revenue and subscription revenues on any subscription services Google-owned company devices bring to Canada. The latter point likely means Google is now set to bring YouTube Red, its ad-free subscription service, to Canada.
This agreement includes YouTube’s Electronic Sell Through (EST) and Transactional Video-On-Demand (TVOD) services, as well.
According to a statement received by MobileSyrup, this agreement represents the first major step in CMRRA’s new audiovisual licensing activities.
Music Business Worldwide reports that this news comes just one month after SOCAN made the announcement that it was moving its mechanical rights with the purchase of Audiam.
According to CMRRA, this agreement “completely changing the landscape for rights administration in this country.”
[source]The Canadian Music Reproduction Rights Agency[/source]