Warner Music Group has told video sharing site, YouTube to remove all music video clips by its artists from the site, after they failed to reach an agreement on how the label should be compensated for music videos.
As a result, Google is forced to remove thousands of videos from YouTube.
Furthermore, YouTube's agreement with the major labels applies to official videos as well as unofficial videos. Therefore users, who have uploaded videos with a Warner Music Group song as the soundtrack, have received or will receive a takedown notice from the label.
Users will get the chance to keep their videos online if they agree to swap the music. YouTube offers its Audioswap feature. This allows users who have uploaded a video clip which uses Warner's music, to select new music for their video.
The original deal made in 2006 allowed Warner's material to be used legally on YouTube in return for advertising revenue. It was hailed as a landmark agreement paving the way for deals with other music publishers.
However, the music company is now asking for its all videos, official and unofficial, to be removed from the website as it was not happy with the revenue-sharing equation.
Warner said in a statement that the company is “working actively” with YouTube to find a resolution on licensing its content to the top online video site. "Until then, we simply cannot accept the terms that fail to appropriately and fairly compensate recording artists, songwriters, labels and publishers for the value they provide."
In a statement on the YouTube blog, the company, which is owned by Google, said:
"Every day we work with the music community to license your favourite music for you to use on YouTube. But music licensing is very complicated.”
"Sometimes, if we can't reach acceptable business terms, we must part ways with successful partners. For example, you may notice videos that contain music owned by Warner Music Group being blocked from the site."
The video sharing site added that its ultimate goal was "to treat everyone fairly".
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