The decision follows a breakdown in negotiations with the Performance Rights Society, the body that governs music publishing, regarding increased licensing costs and conditions.
Despite the ban on music, Patrick Walker, YouTube's director of video partnerships, said that YouTube was still was committed agreeing terms. The debate and commercial positioning between Google and the PRS highlights part of a wider question of how to fund and price content in the digital age.
It seems that YouTube, who has the worlds' largest video watching audience, feels costs are prohibitive of publishing content, stating that Google could end up losing money, whilst the PRS says the move is punishing British consumers and is urging Google to re-think its' position.

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