YouTube of UK to Suffer from No Music Videos

According to Billboard, YouTube (Google) has failed to reach an agreement with PRS, the U.K.'s performing rights agency over acceptable rates per music video stream. Google opted and proceeded to remove music video content from the U.K. site. Google put out a statement saying that the new rates that PRS was proposing would put them at a significant loss per stream and the rate is much higher than what was negotiated before. The Music Publisher Assocation (MPA) of the U.K. is reportedly 'dismayed' at the decision that YouTube has reached and feels that it is a disservice to the YouTube community by "denying the content they most enjoy." While PRS is allegedly charging rates that are "in line with the 2007 U.K. Copyright Tribunal ruling on digital streaming rates," Google calls the rates "simply prohibitive." The managing director, Mark French of rival-video stream site (that focuses on music), Muzu.tv feels that YouTube is using its muscle to get its way. What do you think? Is this the proper way to negotiate?