Dec. 20 (Bloomberg) -- Warner Music Group Corp. said it will remove all its videos and songs from Google Inc.’s YouTube Web site after renegotiations over royalties failed yesterday.

Hundreds of thousands of videos from artists including Madonna and Metallica, as well as content from Warner’s music- publishing division, will be taken down, Warner said. Under an agreement reached in September 2006, New York based-Warner received revenue from advertisements and other royalty payments from video streaming.

“We simply cannot accept terms that fail to appropriately and fairly compensate recording artists, songwriters, labels and publishers for the value they provide,” Warner Music said today in a statement. Warner Spokesman Will Tanous declined to comment further.

Warner Music counts on digital revenue to offset Internet piracy and declining demand for CDs. The growth of digital song sales slowed to 28 percent this year compared with 2007’s 45 percent jump and a 65 percent rise in 2006.

Vivendi SA’s Universal Music Group, Sony BMG Music Entertainment and EMI Group Ltd. are in renegotiation talks with YouTube.

Warner Music fell 2 cents to $3.06 yesterday in New York Stock Exchange composite trading and has dropped 50 percent this year. Google fell 11 cents to $310.17 and has declined 55 percent this year.

The Wall Street Journal reported the Warner Music action earlier.

To contact the reporter on this story: James Callan in New York at jcallan2@bloomberg.net.

Last Updated: December 20, 2008 17:34 EST