MADONNA - WARNER VIDEOS PULLED FROM YOUTUBE AFTER ROYALTIES ROW

WARNER VIDEOS PULLED FROM YOUTUBE AFTER ROYALTIES ROW

Music videos for Madonna and Kid Rock are likely to disappear from YouTube after a contract dispute between Warner Music and the video sharing site.

The record label has instructed YouTube to remove its artists' promotional videos as it believes it should receive higher payment from YouTube owners Google.

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

Warner Music is the third largest label after Universal and Sony BMG. Though YouTube already has video distribution deals with those labels - and EMI - it is thought the site's dispute with Warner could see other record companies demanding more payment.

A contract signed by Warner Music and Google in 2006 was hailed as a landmark agreement for the music industry, with the label receiving a share of advertising revenue for each video and a per-play fee, both believed to be a fraction of a penny.

The 2006 contract saw a host of other labels and artists establishing their own dedicated channels on YouTube, but the accord has now stalled, YouTube confirmed.

"Despite our constant efforts, it isn't always possible to maintain these innovative agreements. Sometimes, if we can't reach acceptable business terms, we must part ways with successful partners," said a blog posting signed by "the YouTube team".