Update: A report from Digital Music News claims that Financial Times got the story about YouTube's upcoming service wrong, and offers an alternative perspective. According to Digital Music News' anonymous source, YouTube will not block the videos that don't sign on with the subscription service. However, the source says the correct intepretation of YouTube's statements are that the site will be blocking music videos from YouTube's monetization program, as whole, if labels can't agree to make their videos available to both the free and premium tiers of the subscription service.

Hence, labels and artists will still be able to post videos, but cannot monetize them through YouTube unless they are onboard with the subscription service. This could have the long-term effect of artists at odds with the subscription service choosing not to post their videos to YouTube at all. That type of resistance to modern digital distribution methods does tend to be rare, on the whole. The original story is below.

YouTube is getting ready to block music videos from artists that haven't agreed to the contract terms for its upcoming subscription service, the Financial Times reported Tuesday. The videos set to get the boot include those from independent record labels and artists including Adele and Arctic Monkeys.

The new subscription service for videos will charge a monthly fee but will let users watch videos on YouTube without ads. FT noted that the service will also allow users to watch videos "even when not connected to the Internet" on any device, suggesting some sort of pinning or downloading infrastructure to go with the platform.

Robert Kyncl, YouTube's head of content and business operations, told FT that record labels representing 90 percent of the music industry have agreed to the contract terms that include provisions for the subscription service. But YouTube will apparently not be able to let the 10 percent that have resisted carry on as ad-supported-only videos, and Kyncl told FT that the blocking will begin in a matter of days.

The news of the subscription service and YouTube's tense relationship with indie labels comes just weeks after The Information reported that Vevo, a video-hosting service centralized on YouTube that deals primarily with major musical artists, is up for sale. Vevo, which is owned in part by Google, Universal Music Group, and Sony Music Entertainment, splits its YouTube ad revenue between the investors.

The Financial Times reports that the 10 percent soon to be cut out of YouTube if they don't sign up with the new contract terms are fighting back through Impala, the "independent music companies association." Impala has made a plea to the European Commission for assistance, stating that YouTube is abusing its dominant market position. Google will start internally testing the subscription service in the next few days, FT says, with a launch time frame of late summer.