YouTube will have to significantly increase the amount it pays to record labels for their music, under a new European copyright regime set to come into force next year.
The European parliament will this week vote on an updated copyright directive designed to boost licencing fees for musicians, songwriters and other content creators.
Currently, YouTube and other sites that allow users to upload videos, are protected under so-called safe harbour rules. These shield it from liabilities for the colossal volume of copyrighted music uploaded by users — as long as it is removed on request.
Music labels have for years lobbied governments to close this loophole, which they argue has created a “value gap” between what they earn from YouTube compared with music streaming sites.