The 3 major labels are furthering their attack on YouTube, the platform they love to hate.
With licenses up for renewal soon, the majors are trying their best to gain some leverage in the negotiation, so they have filed a submission to the US Copyright Office claiming that YouTube's Content ID is ineffective in identifying uploads using content illegally using their copyrights a great deal of the time.
Content ID is YouTube's secret sauce in that it's the content recognition technology that allows the copyright holder to identify and monetize unauthorized uploads of copyrighted material.
Universal Music Publishing claims that it fails to identify as much as 40% of its compositions, according to an article in the Financial Times.
YouTube, of course, claims that Content ID is successful 99.5% of the time. Even if that were true, 0.5% still represents hundreds of thousands of unlicensed uploads, so there's a lot of money being left on the table.
Ultimately, the labels would like the 55/45 revenue split with YouTube to be increased, since all other music streaming platforms are in the 70+% range. YouTube has little incentive to change, however, since even if the labels pull their licenses, the user generated uploads will continue, so the label's vast catalog of music will still remain on the platform.
If it's true that Content ID doesn't catch 40% of the unauthorized uploads, that only puts YouTube in a stronger negotiating position. One should never bet against the major labels in a negotiation, but in this case, my money is on YouTube coming out on top.