Never out of surprises, Google has made a new announcement on Monday – it will block all music videos for the UK on its popular YouTube site.

The reason is that negotiations with it and the PRS for Music, a British entity that holds royalties for over 50,000 composers, have failed. 

Google claims that PRS asked for “many, many times” more money than a previous agreement and that ”The costs are simply prohibitive for us — under PRS’s proposed terms, we would lose significant amounts of money with every playback”

PRS has a different story to tell though, apperantly Google walked out in the middle of negotiations - ”We were shocked and disappointed to receive a call late this afternoon informing us of Google’s drastic action,” the PRS for Music CEO Steve Porter said. According to the company, Google wants to pay “significantly less than at present to the writers of the music on which their service relies, despite the massive increase in YouTube viewing.”

Who is right is not clear yet, but one thing is for sure – labels want another outlet for making profits after seeing CD sales have taken a plunge. Enough is never enough.

Source: Reuters