As Mrsweep said, the YouTube management tools make it real easy to add music - you can hunt for something you like based on a number of different categories or search for a named track. You don't have to do anything other than tell it to add it to your video - you even have options for it to replace or merge with the existing audio or to adjust the start point/end points. Really neat and simple!
Thats because YouTube shows their ads on YOUR video, and pays the copyright holder royalty $$.
I obviously have AdBlock and watch all videos ad free, and i hope everyone else does too. I dont want my videos to have random ads constantly popping up..
I just choose from the free stuff that YouTube offers. After you upload a video select Edit > Audio and chose from available tracks. There is a little checkmark to make it show only tracks of a similar length as your video.
You can use almost all of your MP3s on your hard drive provided you're willing to give up any chance of making money with your video. Also, your viewers may be subject to a commericial (they can stop it after 4-5 secs). In rare occasions, your video will be blocked in certain countries - Germany being blocked more often than others. In very rare instances, your video will be blocked in the US, but if that happens you will get an email from youtube advising you of copyright issues.
You can check for issues in advance on specific artists and songs here: YouTube
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