March 13, 2009 10:45

Analysis predict that YouTube's PRS battle is just the start

Expiring licensing agreement could spark more problems for music online

YouTube's dispute with the Performing Rights Society could just be the first in a series of battles between the music licensing body and music providers.

The video site is taking down music videos from its UK site, as they could not reach a deal over what royalty should be paid to the PRS, who represent the copyright holders.

However according to music industry commentators, even if the deal between the online video site and PRS are resolved, more stand-offs are likely when the Joint Online License framework expires on June 30.

According to Paidcontent.co.uk, online sites are pushing for new deals, as they attempt to make money online.

"The license was inked before YouTube and others took off, before they’ve had a chance to find a workable business model, and before many of the original signatories went and changed their music initiatives," explains the site.

It is not clear how online music providers will react when the new agreement comes up for discussion - however, sites including Last FM and We7 have indicated they find the current licensing agreement expensive.