Two days ago, Warner Music decided it would be in its best interest to terminate the partnership with YouTube and demanded that the popular video sharing Web site immediately remove all of its content.

Users will lose access to a significant amount of video clips, as Warner Music owns the rights to hundreds of thousands of videos, which also include all the songs published by its Warner/ Chappell unit.

As expected, the disagreement between the two involves their incoming revenue. Warner demanded a bigger share of the huge potential revenue expected from YouTube’s visitor traffic.

"We simply cannot accept terms that fail to appropriately and fairly compensate recording artists, songwriters, labels and publishers for the value they provide," Warner’s officials explained in a statement.

Through the deal signed in 2006, Warner Music became the first major media company to sign a deal with YouTube and soon after, Universal Music and Sony Music took the same path and reached agreements with the video-sharing site. Even though the contracts might present some differences, the main concept is that the music companies receive a share of the advertising revenue associated with their videos and also a per-play payment for each one of their viewed clips.

The problem is that the amounts coming are smaller than expected and that is why a renegotiation was considered necessary. "Despite our constant efforts, it isn't always possible to maintain their innovative agreements," YouTube’s representatives explained through a blog post that addressed the topic on the difficulties of music licensing.