Warner and YouTube Reach Deal

It was announced today that Google Inc's YouTube and Warner Music Group have reached a deal. The deal is that YouTube, the world's largest internet video site, will feature music videos from all the major music companies.

The financial terms of the deal were not announced, but Warner will most likely receive most of the revenue made from advertising around the music videos on the site.

According to Reuters.com, Chris Maxcy who heads the music partnership at YouTube, is happy with the deal. Maxcy said, 'It sets us up for a sustainable partnership going forward by sharing revenues, where the vast majority of the revenues will be going to Warner Music associated with advertising when consumers watch or listen to the content on YouTube.'

Music companies have long fought online video sites such as YouTube for quite some time, feeling that these sites should pay more money to licensing agreements for music or music videos. YouTube and other sites like it have garnered a small amount of revenue from their advertising.