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Youtube has hit a wall while re-negotiating the licensing deal, that expires in March 2009, to host Warner videos on the site. As a result of this Warner has decided to pull its videos from Youtube. Apparently Warner wants more bucks in return for the music videos than Youtube is willing to pay, specially because Youtube itself isnt making much from the videos on the site.

According to Wall Street Journal:

Warner Music Group Corp.’s videos and songs began disappearing from the YouTube videosharing Web site early Saturday after talks to renegotiate a licensing deal stalled.

It isn’t clear whether the decision to remove the content was made by Warner Music or YouTube. But regardless, the dispute may indicate the start of a broader dispute between YouTube and the music industry over the value of music content on the site.

Warner, like the three other major-label groups, licensed its recording and music-publishing catalogs to YouTube shortly before the site’s acquisition by Google Inc. in 2006. In exchange for the use of their music videos and songs, the music companies are paid a share of revenue generated by ads displayed alongside both their content and user-generated content that contains their music.

People in the music industry generally say that music videos don’t command significant advertising fees online, and Warner executives have privately expressed frustration with the amount of money they receive from YouTube.