Warner Music have pulled thousands of videos from YouTube.
Artists such as Madonna and The Red Hot Chilli Peppers have been removed from YouTube in a row over licensing.Warner Music Group ordered that the video sharing website take down all music videos after contract negotiations over fees broke down.
Both companies were locked in a battle over licensing agreements for Warner's music videos and the fee that the Google-owned website pays the label when any of its videos are watched.
Warners gets a fee of less than a penny each time a video is viewed, or a percentage of the value of the advert alongside the video, which ever is greater.
But talks fell apart because Warner reportedly wants a bigger share of the revenue although it was not disclosed how much.
A source familiar with Warner Music's talks, however, said the amounts it has been receiving were "staggeringly low".
In a statement, the company said: "We simply cannot accept terms that fail to appropriately and fairly compensate recording artists, songwriters, labels and publishers for the value they provide.
Warner Music, also home to artists including Led Zeppelin and rapper T.I., was the first major media company to negotiate a deal with YouTube in 2006.
YouTube admitted on its blog over the weekend: "Despite our constant efforts, it isn't always possible to maintain these innovative agreements. Sometimes, if we can't reach acceptable business terms, we must part ways with successful partners."
Music-News.com
