Don't know if this is new news, but it's new to me.
Instead of continuing to take down videos which contain music owned by third parties, UMG has (at least in this case) added an iTunes link to purchase their song I've used on Youtube without forewarning me of their taking this action... which I think is a pretty simple, elegant solution.
KAI is Ballet Austin set to The New Radicals.
This particular vid has been up for a while under an account for a show I produced for the PBS station in Austin, KLRU. The use of this music falls under PBS's umbrella agreement with ASCP/BMI regarding broadcast, but the net has been a dark-grey area.
The video has been live on YTube for over a year and they've just added the iTunes link this past week.
It's easy to see the possibilities regarding concerts, live tapings on NPR, etc... make one-off music videos, post on Youtube and attach the link to your iTunes account after having uploaded the audio content (or eventually the music video itself), and maybe actually make some money. A REALLY amazing opportunity for unsigned bands if nothing else. If you (the band, radio station, etc) own the rights to the underlying performance and recording... you have just cut out every middle-man-delivery-obstacle(except perhaps the Chinese government) between artist and consumer without any up-front cost required from either party interested in the actual product. Neat.
I'm going to experiment with a few other next-steps. Let me know if you're interested in how they go.