Once again, Warner Music has demanded YouTube to pull all music videos by its artists which could include hundreds of thousands of videos clips. Why? Because contract negotiations broke down.

Warner wants a bigger chunk of YouTubes revenue stream.

“The music companies typically get paid a share of any advertising revenue associated with the video and a per-play payment for every video viewed.” The per-play fee is usually a fraction of a penny and with millions visiting YouTube everyday it was all expected to add up to a substantial amount.

A source familiar with Warner Music’s talks said the amounts it has been receiving from YouTube were “staggeringly low”.

Music labels receiving a penny for every click to stream a video is a death bed business model. To illustrate, the label would only make 10,000 dollars after one million video streams from one of their artists.

The return of a labels investment has dropped exponentially from a 10 dollar CD to 99 cent digital track, to less than a penny for a video stream. Where does it end?

As one insider from MTV said after the ratings drop,“We’re finding out that digital isn’t the holy grail that everyone thought.”