Google has long held that it has a unique place in our media, since it is not responsible for, er...the media it displays.
Yes, seriously, the company that want to organise all of our knowledge, claims to own and control none of it.
Except that now they have spawned Vevo with UMG. So, Google is now a publisher. They are now a traditional media company.
At the same time they control practically all search advertising and most internet display advertising in the English speaking web.
A strange dichotomy.
So, under the TV Without Frontiers (now called Audio-Visual Media Service Directive) legislation Google becomes a broadcaster, so everything they do should be legislated accordingly - including YouTube.
Most content providers are unashamed wholesalers and to see UMG do this deal is probably a sign of final capitulation.
The music market has totally collapsed and now many stable doors will be bolted shut.
But this deal is a sign of weakness in both parties. UMG cannot get its head around 'internet' and Google is recognising that its 'organising' model is a total failure in the video market.