YouTube Subscription Service Spells Death For Indie Labels

Here's some bad news for all you YouTube watchers currently getting your music fix from the live streaming service. According to reports, YouTube will remove music videos by artists like Arctic Monkeys and Radiohead since the independent labels belonging to those have refused to come to terms with the site.

Google, which owns the YouTube streaming service, has been re-negotiating contracts with these independent labels while it now finally intends to launch the subscription service in full flow.

Speaking to the Financial Times in a recent report, Robert Kyncl, YouTube's head of content and business operations, said videos from independent labels could be blocked "in a matter of days," provided the new licenses are not negotiated.

While a spokesperson for the indie labels said YouTube was actually making a "grave error of commercial judgment". With the new service now in place, however, YouTube said it is bringing "new revenue streams" to the music industry.

According to a BBC report, some independent labels say that they are being offered "highly unfavorable terms." In fact, "Radiohead guitarist Ed O'Brien accused Google of trying to 'strong-arm' labels into accepting low fees."

Alison Wenham, who runs the Worldwide Independent Network, representing the independent music community, said YouTube is "making a grave error of commercial judgment in misreading the market".

"We have tried and will continue to try to help YouTube understand just how important independent music is to any streaming service and why it should be valued accordingly," she added.

The BBC also understands that even if these blocks come into being, "content from artists signed to independent labels will remain available on YouTube via channels such as Vevo."

Stay tuned to GizBot for more updates.