First-order effects

• Fans get free, on-demand access to EMI's roster of official music videos on YouTube, ending the cat-and-mouse between the label's rights enforcement and fan uploads.
• Google gains a flagship label partner whose catalog makes YouTube more defensible against claims that its growth rests on unlicensed copyrighted material — a point CNET framed as a breakthrough licensing precedent rather than a routine content deal.

Second-order effects

• The remaining major labels now face pressure to match EMI's terms or watch their artists' audiences and ad dollars consolidate on a platform where rivals' catalogs are legally hosted.
• Syndicated coverage from Ars Technica pairs the deal with EMI's DRM-free push, suggesting the label is repositioning around paid convenience everywhere — which puts download retailers and other rights holders' stricter terms under competitive strain.

Third-order effects

• If the pattern holds, music-video economics shift from per-copy sales and takedown litigation toward advertising-shared licensing on open platforms, with labels negotiating catalog-wide royalty deals instead of policing individual uploads.
• User-generated video built on licensed music becomes a legitimate distribution channel, restructuring how labels value their catalogs — as audience reach on platforms competes with unit sales as the primary asset.