Today marked the start of something that could potentially be crippling to YouTube's new revenue endorsements. YouTube and Warner Music failed to reach an agreement to keep their content on the most popular video web site today, after Warner's contract ended with YouTube.
The disagreement lies with Warner Music wanting more revenue off of each hit on videos posted by the music giant, even if YouTube doesn't bring in any revenue from the video itself, but both YouTube and Warner Music take blame for not reaching an agreement. The decision to boost profit off of each hit to support artists and song writers doesn't come as a surprise in a falling economy.
Warner Music posted a statement about the issue today:
"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."
Sony, Universal Music Group, and EMI contracts are all set to expire eventually, with the same possibility that each company won't renew their contract with YouTube like Warner Music has, if each company expects more revenue. No comment was made when Warner Music and YouTube will talk again.