YouTube does U-turn over blocking indies

YouTube has postponed a controversial plan to block certain record labels from its video platform, following an outcry from the creative community and growing scrutiny from European regulators.

Two weeks ago, the Google-owned company warned that “in a matter of days” it would start taking down videos from a number of record labels that had refused to sign its new licensing terms.

But the uproar that followed the revelations has prompted YouTube to make a last-minute U-turn. The world’s largest video streaming company is allowing more time to negotiate a solution with labels, although it still intends to block them if they cannot reach agreement, according to people familiar with the matter.

YouTube has already sent letters to a number of record labels giving notice that their existing contracts will be terminated.