Google-owned popular video-sharing site YouTube will be blocking certain music videos from indie bands if conflicts in contracts emerge upon the launch of a new streaming music service.
In a report by Time, Google-owned YouTube is planning to remove and block indie acts because "their labels could not come to an agreement" to the video-sharing site's update on terms.
The Google-owned YouTube is developing its subscription-based music streaming service to be launched within the year but deals with independent labels have been a conflict in the process.
This includes The Beggars Group, a major independent player with acts like Vampire Weekend and the XX, a blog from New York Times said.
According to an official statement released in May by representative of the independent labels, YouTube was trying to be a tech giant as they put a grip on smaller labels to accept non-negotiable terms.
This action shall also offer smaller payout than competing services such as Spotify and Dezzer, the Time said.
Meanwhile YouTube cleared that the new service will be an advantage for labels and artists as they could gain more revenue.
YouTube spokesman Matt McLernon said in an email statement published in Time that the goal of the new services is to deliver "amazing music experience" to a large platform for fans and artists.
He added, "We're adding subscription-based features for music on YouTube with this in mind - to bring our music partners new revenue streams in addition to the hundreds of millions of dollars YouTube already generates for them each year."
YouTube head of content and business operation Robert Kyncl also said that the video-sharing site has tried to reach over 90 percent of deals in the music industry. This includes Universal Media Group, Sony, and Warner Music Group and also a number of indies.
He explained that the remaining labels' videos will only be removed in the markets where they distribute music.
The new streaming services offered by YouTube will allow users to navigate and arrange song by album. The service will also let users to listen to songs on YouTube as they also use other mobile applications.
