While the music and tech industries have definitely had a tumultuous relationship on issues such as low payouts and other business related tensions, within the past month Youtube has tried to smoothen everything over by hiring a music industry man named Lyor Cohen. Cohen has taken the stage as Youtube’s ‘Global Head of Music,” where his primary goal will be to save the already crumbling relationship these two parties have.
This year alone Youtube has began to become even more heavily involved in the music industry by launching its very own music app. A large portion of the tech giant’s revenue stems from mostly pre-roll :15 to :30 sec video ads that generate billions of dollars to the company. The music industry main argument is that musicians often see a minimal portion of that money in their pockets.
Cohen himself served as a well-respected and effective industry executive for over 30 years, and has worked with a long list of artists of all genres in the music world. Throughout his 30 years as an exec, he has most notably been the chairman and CEO of Warner Music Group. In this role, he successfully navigated the field of recorded music, and has since then founded “300 Entertainment,” which is a music label that is distributed by Atlantic Records.
“Lyor is a lion of the music industry,” said YouTube’s Chief Business Officer Robert Kyncl in a statement. “From Rush to Def Jam to Island Def Jam to WMG then 300, he has consistently been a pioneer, charting the course for where music is heading. As we enter the growth era of the music industry, Lyor is in a position to make tremendous difference in accelerating that growth in a fair way for everyone. We are thrilled to welcome him to YouTube.”
In addition, Cohen will also help Youtube in further expanding its involvement in the music industry since videos and songs consistently bring in more views/listens than other platforms such as Spotify, Apple Music, and Pandora.