"Some labels are refusing to sign up because they say they're getting a raw deal from Google. They say that while the major labels have negotiated lucrative contracts, Google is offering indies comparatively bad terms. It's their right to say they don't want to sign up if they don't like the deal Google is offering them. In response, Google is drawing a line in the sand: If your label won't sign on to Google's crappy licensing deal for a new streaming service, you can't host videos on YouTube at all."
http://gizmodo.com/googles-about-to-ruin-youtube-by-forcing-...
Google has a reply appended at the end that is absolutely the worst bit of corporate puffery-non-response I've ever seen from them and IMO as bad a sign as any of the actual things they're being accused of plotting.