In what can seem to be an unfortunate situation YouTube the worlds largest distributor of video content has been forced to limit all distribution of Premium Music Videos to UK viewers.

The decision comes after not being able to come to an agreement with PRS a British Song Writers Society that wanted increases in royalties many times higher then the previous agreement that just expired.

A similar situation just occurred between Warner Brothers and YouTube where they pulled all the music and even went in and searched for personal videos that used Warner music as a background.

PRS Music Chief Executive Steve Porter said in a statement “We were shocked and disappointed to receive a call late this afternoon informing us of Google’s drastic action” .

Unfortunately when they gave Google an ultimatum they didn’t seem to understand that Google also had the right to follow through on PRS’s requests that the music be pulled.

Who is most likely to be hurt by this decision? Probably the artists because although YouTube does not charge their visitors like ITunes does when they want to listen to something YouTube is a platform that artists use to popularize their music.

Distributing Videos to Millions of Unique visitors every day is a bandwidth and production intensive task that YouTube has mastered. If Industry was to follow with their own sites who is to say where people would get their music.

SonyBMG has had a large video distribution site for years but they in no way compair to the number of visitors YouTube, MySpace or other hosters can offer.

Pretty much this is about asking for too much at the wrong time.