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YouTube music licensing deal breaks down


Record label Warner Brothers will remove music it controls from the world's biggest video site YouTube, it said. The company had a deal with YouTube owner Google but said that talks over new terms have broken down.

YouTube reached licensing deals with the world's four major music labels – Warner, Sony BMG, Universal and EMI - two years ago. The Warner deal was due for renewal, but YouTube and Warner have said that talks broke down.

Some Warner videos were reportedly taken down from YouTube since over the weekend.

"We simply cannot accept terms that fail to appropriately and fairly compensate recording artists, songwriters, labels and publishers for the value they provide,” said a Warner Music statement, according to news agencies.

"We are working actively to find a resolution with YouTube that would enable the return of our artists' content to the site," it said.

The deals cut with labels involve fees and ad sharing revenue being paid by YouTube to the lables with whom it has a deal when videos are played through the site.

YouTube's corporate blog said that the companies had been unable to reach agreement.

"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," it said. "We understand this might be frustrating for some of you, and we're sorry about that. Our ultimate goal is to treat everyone fairly: to respect the rights of musicians, songwriters, and their biggest fans, so that everyone can continue enjoying original content on YouTube."

The deals cut by YouTube and the major labels involve the sharing of revenue on videos that are played. Music is tracked by YouTube's own technology and money paid to the lables. The deals also allow the creators of YouTube videos to use licensed music as a backdrop to their films.

EMI was the last of the four majors to sign a deal with YouTube, which it did in 2007.

A Warner spokesman told The New York Times that the deal between it and YouTube ran out months ago. The company's revenue from all digital activity as being $639 million, it said, though a tiny fraction of that is believed to be from YouTube.

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