I get that this site(HN) has a lot of google fans, to the point that often completely illogical arguments are painfully maintained by characters that would rather gush loyalty than have an honest discussion.

But to those that think youtube is holding all the cards here need to look at what has undone so many other sites.

This is youtube's largest channel, and it's a large source of referral traffic, especially social sites like facebook.

It's google's prerogative to keep this kind of referral traffic, not only to maintain relevance, but also to be perceived as the first choice in online video. If the average teenager begins to associate another site as the first choice in video that would have follow on consequences as google would not be able to control the user experience. (Or tout Google+) Users will hunt around for the right video, they're not so loyal as to abstain from watching a music video because it comes from vimeo etc.

Youtube has been effective at shutting outtheir competition with exclusivity deals like these, a competitor could do the same to youtube - and this is a pretty desirable catalog that appeals to a very active online demographic, it would instantly make a competitor relevant, elevating them above the pool of B-grade youtube competitors.

Is it just me, but threatining to pull all "Justin Bieber" video's from youtube as a threat is perhaps not the strongest point to win a argument. I'd pay Google to do that.

Also reading the article, Vevo in effect created this situation and to complain publicly does seem in bad taste as I see it as Vevo stole a opertunity from Universal, created a new monoply with the help of Googles youtube and then now that has been established are trying to bully more money from them. This is ontop of the aspect that Vevo said they would control/do the adverts and in that they are perhaps at fault for there own shortcommings and blaming Google for it in a way that is mearly showboating.

But again a youtube without Justin Bieber is one I realy have no issues with at all, were do I sign?

Makes sense to me. Maybe Google should lower the rates a little. I'm sure Google would prefer to earn $10 with reduced fees from $15 than earn 0$ and create a competitor.

I don't think they realise who has the real bargaining power in this negotiation. VEVO needs YouTube - YouTube no longer needs VEVO.

Google will be more than happy to let them walk away and allow remixes and user posted content to fill that hole (it's how YouTube started). VEVO will just come crawling back.

YouTube has a monopoly on online video and they may just turn out to be one of Google's most valuable acquisitions (along with DoubleClick/Android).

> Morris: If Justin Bieber and Adele are somewhere else, that will be where people will go. If you don't have the content, no one will come

YouTube has the people now (daily standing subscriber audience + network effects) - the content comes to YouTube not the other way around. People pay/share video revenue on YouTube by posting via Machinma/IGN just to get exposure.