“A single format can support a broad variety of requirements, ranging from ad supported video streaming, music subscription services, TV on-demand, to multi content subscription services such as YouTube Red,” YouTube reportedly said of the development. “This means lower operational costs as a single implementation will support a broad variety of services and partners.”
YouTube was one of the initial testers for this tool, along with collection and rights management groups including SACEM in France, GEMA in Germany, and BMI in the U.S.
YouTube, the world’s largest distributor of music, has been criticized recently for its operating model which permits user uploads of tracks and albums, and responds in different ways to take-down requests from rights-holders. See the latest offensive against YouTube here.