Universal stars on YouTube

I noticed a few days ago that Universal Music Group now have their official channel up on YouTube. There are over 3,500 videos up here so far.
This is at a time when YouTube is been scourged for copyright infringement and lots of videos are being removed. This move by Universal raises new questions on the future of worldwide copyright. I would be very interested to know how the money changes hands between advertisers, Youtube and Universal. The quality of a lot of the encodes leaves a lot to be desired however and tags are not done very well thus making it no very searchable.