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YouTube completes Sony content deal

By Reuters

Posted on 13 Feb 2009 at 15:11

YouTube has renewed its global licensing deal with Sony, allowing it to continue showing the music videos of artists such as Beyonce and Avril Lavigne.

The deal with Sony, the world's second largest music company, was crucial to YouTube after Warner walked away from similar talks last December in a dispute over licensing fees. Warner subsequently asked YouTube to take its music videos down.

A person familiar with Sony Music's plans claims the company still sees value in YouTube's huge traffic, even if it hasn't proved an amazing money spinner.

YouTube recorded more than 100 million users in December, according to data from comScore.

YouTube says that licensing talks with Universal, the world's largest music company, and EMI are still running.

The music labels, who signed early licensing deals with YouTube in 2006, have been keen to improve the payment rates they earn from the popular video site.

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