The row between PRS and YouTube has attracted high profile attention.
Lord Carter, the UK's Minister for Communications, Technology and Broadcasting, has also commented on the row.
Giving evidence before the Business Select Committee the minister said he suspected a degree of "commercial posturing on the part of both parties" but said the row was indicative of a wider issue.
"It is an example of the question of how do you price and fund content in the digital world," he said.
"We have had decades of content being funded in one way - via the licence fee and advertising - and that model is changing at a rapid speed," he told MPs.
YouTube's director of video partnerships Patrick Walker told BBC News the PRS was seeking a rise in fees "many, many factors" higher than the previous agreement.
He said: "We feel we are so far apart that we have to remove content while we continue to negotiate with the PRS."
"We are making the message public because it will be noticeable to users on the site."
YouTube pays a licence fee to the PRS which covers the streaming of music videos from three of the four major music labels and many independent labels.
While deals with individual record labels cover the use of the visual element and sound recording in a music video, firms that want to stream online also have to have a separate deal with music publishers which covers the music and lyrics.
In the UK, the PRS acts as a collecting society on behalf of member publishers for licensing fees relating to use of music.
It said of the decision:"This action has been taken without any consultation with PRS for music and in the middle of negotiations."
"Google has told us they are taking this step because they wish to pay significantly less than at present to the writers of the music on which their services relies, despite the massive increase in YouTube viewing."
YouTube is the world's most popular online video site but has been under increased pressure to generate more revenue since its purchase by Google for $1.65bn in 2006.
Services such as Pandora.com, MySpace UK and Imeem have also had issues securing licence deals in the UK in the past 12 months.
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