YouTube rival says site ‘doesn’t stack up’ chief releases statement slamming YouTube bosses

Chiefs behind music video website have attempted to capitalise on YouTube’s decision to remove all premium music videos from the UK site by releasing a statement slamming the site’s chiefs and their working methods.

YouTube bosses made the decision to remove the videos following a dispute over payment fees with the Performing Rights Society. In a statement managing director Mark French said that YouTube‘s business model “doesn’t stack up”.

French suggested that the Performing Rights Society should not be penalised for what he said was YouTube‘s inability to generate sufficient advertising rates to pass on.

“It’s not the music industry’s fault that YouTube‘s business model doesn’t stack up,” he said. “The model doesn’t support paying the current PRS rates let alone the payment to artists, because they cannot command high enough advertising rates.

“Because sites like YouTube are built off the back of user generated content, and have a storied past of allowing ‘illegal’ content to be viewed – brands are resistant to pay premium advertising rates.”