YouTube To ‘Begin Removing' Indie Music Videos

YouTube are believed to be ready to remove music videos by bands signed to independent record labels who have not agreed to new terms, according to a report from the US.

The Financial Times are reporting that YouTube – owned by Google – will start blocking videos “in a matter of days”. The move comes after the independent sector provided heavy resistance to negotiations, saying that they will not be strong-armed over the 'take-it-or-leave-it' contracts.

The contracts pertain to YouTube's new music streaming service, which will likely offer a 'premium' ad-free and device-friendly tier for around $10 a month. The service could be launched in the coming months.

Labels that may be blocked from the services include XL, home to Adele, which would see her videos removed in territories where she is signed to an independent label – including Australia where Inertia distribute XL. Indie label Domino's signing Arctic Monkeys are also being mentioned as a possible artist that will disappear from YouTube, but given Domino's deal with Universal imprint EMI in Australia it may not affect the territory.

With the Australian Independent Record Labels Association's outgoing General Manager Nick O'Byrne currently overseas, it was unclear how many Australian independent labels are expected to be effected.

While the financial yield for an Australian independent band may not seem significant – one millions views may only generate $1,000 – streaming services are becoming an increasingly valuable revenue source. YouTube offer rightholders a cut of advertising revenue surrounding their videos.

In 2013 as Australia's recorded music industry hit record low figures, streaming revenue doubled to $20.9 million. Making up 5.9 percent of the market, it's a stream that the industry needs to nurture.

If YouTube – the world's most prominent streaming services – hold to the take-it-or-leave it contracts, indie stakeholders fear they will have to choose between having their content reach as many people as possible and relinquishing an emerging revenue stream.