YouTube hires legendary Lyor Cohen

In an inspired move to strengthen its relationship with record labels, YouTube has hired one time Warner Music Group Chairman and CEO Lyor Cohen as its Global Head of Music.

Record labels have long complained of YouTube’s low payment to its artists, compared to Spotify and Apple Music, despite its extensive use of music to draw users.

Since April, rights holders have been lobbying to sort out the “value gap”.

The European Commission is looking into imposing an order on content uploaders as YouTube, Vimeo and DailyMotion to remove their “safe harbours” and negotiate with rights holders on what should be a proper rate.

Cohen, who’ll take over his new role later in the year, has already fired off a letter to YouTube employees, laying out a three-point plan for his new position.

It addresses both the challenges and opportunities YouTube faces moving forward:

“First, helping the music community embrace the technological shifts we’re seeing in music today so we can help take the confusion and distrust out of the equation.

“Second, building on the great work you all have done to help the music industry and creative community break new songs and artists to YouTube’s audience of over 1 billion fans. From building on the success of the YouTube Music app, to shining a light on emerging artists, I believe our potential to strengthen the industry is massive.

“And third, I hope that together we can move towards a more collaborative relationship between the music industry and the technologies that are shaping the future of the business.”

While at Warner, Cohen was the first to put the heat on YouTube for it to create a premium subscription tier so it could compensate artists better. He has also maintained in the past that Spotify and Apple Music insisted on having a free tier so they could better compete with YouTube.

Cohen began his career in the 1980s as an artist manager for Russell Simmons, looking after Run DMC and Beastie Boys (and striking lucrative sneaker deals for them). He became President of Def Jam Records and, when it was taken over by Universal Music, ran its combined urban section. He then headed Warner Music Group’s recorded division until 2012, and went on his own.

He co-founded and is Chairman of 300 Entertainment, a smaller artist-focussed record label which includes Australia’s Meg Mac, Fetty Wap, Young Thug and Coheed & Cambria. He will stay with 300 until December 5. YouTube’s parent Google, which invested $5 million into 300 Entertainment, will remain its biggest stakeholder.

Cohen will play the same role as a bridge with the music industry the way other music industry execs as Jimmy Iovine do at Apple, and the way former Lady Gaga manager Troy Carter does at Spotify.