YouTube and Warner Music End Agreement – Music Videos Blocked from the Site

Things reached a deadlock in the partnership between Warner Music Group and YouTube. What was expected as licensing agreement being renewed for the WMG’s music videos ended with the record company pulling its artists from the Google-owned video site.

Warner came with a statement:"We are working actively to find a resolution with YouTube that would enable the return of our artists' content to the site. Until then, we simply cannot accept terms that fail to appropriately and fairly compensate recording artists, songwriters, labels and publishers for the value they provide."

Google came also with a statement of its own Friday on its blog: "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.

Currently YouTube is generating significant revenue for at least one of the major labels. According to CNET News earlier this week, Rio Caraeff, Universal Music's digital chief, said that YouTube brought in "tens of millions" of dollars for the recording company in 2008, up 80 percent from last year.

Among Warner's most popular musicians who will be removed from YouTube, are Led Zeppelin, Eric Clapton, REM, Madonna, Red Hot Chili Peppers, the Grateful Dead, TI.

Warner‘s somehow rash decision costs the company access to the most popular online video site, which hit a record of 100 million visitors in October. Step by step YouTube has established itself as one of the Web's most successful ad-supported jukeboxes.