On Saturday, Warner Music Group officially required YouTube to remove all of their artists’ music videos, as negotiations with the video-sharing website have come to an end. This means that several hundreds of thousands of videos belonging to Warner Music and Warner/Chappell record labels might be removed.
 
It seems that negotiations had ceased on Saturday morning because Warner are eager to have a bigger share of the income that YouTube generates through its users’ activity, even though the company didn’t do any statements regarding their requirements.

Still, it is clear that people at Warner haven’t been so happy with earns from YouTube and have known that Google’s subsidiary has a bigger potential. The company said in a statement that they feel that YouTube’s terms do not compensate recording artists “for the value they provide.”

With figures from comScore which show that there are more than 100 million viewers in the United states in October alone, YouTube is a golden mine for big record labels to promote their artists in a very effective way. On the other hand, Warner is best known for promoting artists like The Red Hot Chili Peppers and T.I. and was the first company of its kind to promote their content on YouTube in 2006, prior to the website’s acquisition by Google.

Typically, music companies get a share from advertising revenues that are associated with the video streamed at that time. YouTube has made constant efforts in 2008 to extend this type of advertisement and revenue share on order to keep its partners happy.