YouTube might take down music videos of Adele, Arctic Monkeys and Radiohead after the artist's independent labels refused to agree with terms of the website, BBC News reported.
As Google, which owns YouTube, prepares to launch a music subscription service at the end of summer 2014, the company has been renegotiating contracts with various independent labels.
A "grave error of commercial judgment" was being made by YouTube, a spokesperson for the indie labels said. However, the video-sharing website claimed to be bringing "new revenue streams" to the music industry.
If new licenses with an artists' independent label are not negotiated, their video could be blocked "in a matter of days," Robert Kyncl, YouTube's head of content and business operations, said while speaking to the Financial Times.
Although Universal, Sony and Warner, the three major record labels, have agreed to the terms of the site, smaller independent labels are still holding out on signing the deal.
Some independents said they are being offered "highly unfavorable terms". Google has been accused by Ed O'Brien, Radiohead guitarist, of attempting to "strong-arm" labels into accepting low fees.
Alison Wenham, who runs the Worldwide Independent Network, which represents the independent music community, said YouTube is "making a grave error of commercial judgment in misreading the market".
"We have tried and will continue to try to help YouTube understand just how important independent music is to any streaming service and why it should be valued accordingly," she added.
"By not giving their subscribers access to independent music, YouTube is setting itself up for failure... The vast majority of independent labels around the world are disappointed at the lack of respect and understanding shown by YouTube."
According to BBC News, Chief executive Geoff Taylor said the move would end up "denying fans the opportunity to hear their music, and labels and artists the chance to earn a living from it - because they are unwilling to surrender to a take it or leave it ultimatum."
But even if certain artists' videos get blocked, they will still be available on YouTube via channels such as Vevo.
However, independent record labels with exclusively licensed videos, such as acoustic sets or live performances, may be taken down.
A YouTube spokesman told the BBC: "Our goal is to continue making YouTube an amazing music experience, both as a global platform for fans and artists to connect, and as a revenue source for the music industry."
"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."
"We are excited that hundreds of major and independent labels are already partnering with us."
