Mr.Kafka might be on to something. Not Franz, but Peter, from All Things Digital. In his point of view, the most viable solution for the record companies-YouTube conflict is a simple one: just rip off MySpace. Creating a YouTube Music would not solve everything, but from our perspective, as YouTube users/musicians, would be a really nice option. This would create a new style of MTV, going back to basics for what MTV used to be: Music. Only, this way, we, the users, would have compelte control over what videos to watch and when, without stumple upon them by mere chance, having to sit through another episode of "The Real World."
But the promise land doesn't end up there. If they were to make a deal similar to Warner's back in 2006, this would mean pretty much carte blanche for any covers we might want to play: from Red Hot Chili Peppers, to Barney the Dinosaur. That is, as long as no executive looks at another in the industry that is YouTube and yells out: "why is he making more revenue than me?!"
Go ahead and read both articles by Peter Kafka for the entire story and his own theory of why YouTube Music should be created, and how it should work, as opposed as just reading my rambles and rants.
Media Memo: How to solve the big music/YouTube spat: copy MySpace.
Media Memo: YouTube = MTV 2.0. Time to turn that into a business.