YouTube will not reverse its decision to block music videos to UK users despite a plea from the Performing Rights Society to change its mind.
It is removing all premium music videos to UK users after failing to reach a new licensing agreement with the PRS.
Patrick Walker, YouTube's director of video partnerships said it remained committed to agreeing terms.
But such agreement needed to be done "at a rate which is sustainable to all", he told the BBC.
Thousands of videos were made unavailable to YouTube users from late on 9 March.
Patrick Walker, YouTube's director of video partnerships, told BBC News that the move was "regrettable" but that it continued to talk to the PRS.
"The more music videos YouTube streams, and the more popular those music videos are, the more money YouTube will generate to share with the PRS and its song writers. It's a win-win arrangement.
YouTube, however, cannot be expected to engage in a business in which it loses money every time a music video is played - that is simply not a sustainable business model." he said.
Steve Porter, head of the PRS, said he was "outraged... shocked and disappointed" by YouTube's decision.
In a statement, Mr Porter said the move "punishes British consumers and the songwriters whose interests we protect and represent".
The PRS has asked YouTube to reconsider its decision as a "matter of urgency".
It is removing all premium music videos to UK users after failing to reach a new licensing agreement with the PRS.
Patrick Walker, YouTube's director of video partnerships said it remained committed to agreeing terms.
But such agreement needed to be done "at a rate which is sustainable to all", he told the BBC.
Thousands of videos were made unavailable to YouTube users from late on 9 March.
Patrick Walker, YouTube's director of video partnerships, told BBC News that the move was "regrettable" but that it continued to talk to the PRS.
"The more music videos YouTube streams, and the more popular those music videos are, the more money YouTube will generate to share with the PRS and its song writers. It's a win-win arrangement.
YouTube, however, cannot be expected to engage in a business in which it loses money every time a music video is played - that is simply not a sustainable business model." he said.
Steve Porter, head of the PRS, said he was "outraged... shocked and disappointed" by YouTube's decision.
In a statement, Mr Porter said the move "punishes British consumers and the songwriters whose interests we protect and represent".
The PRS has asked YouTube to reconsider its decision as a "matter of urgency".
