Want to watch YouTube on your TV? There are plenty of devices and services that let you do that, with more on the way.

But starting next month, at least one gadget is getting its YouTube feed shut down. Syabas Technology, which makes a line of set-top boxes called “Popcorn Hour,” says Google’s (GOOG) video site has told it to remove YouTube content beginning December 2.

This one is a straight he said/he said: Syabas, via a blog post from COO Alex Limberis, says it has an agreement to use YouTube’s clips, but that YouTube had changed the terms of the agreement recently. YouTube won’t address that claim directly, but offered this statement:

Since July of 2008, YouTube’s Terms of Service has restricted implementations for televisions based on our APIs. YouTube has been in active discussions with various developers on how best to implement YouTube on set top boxes and TVs. There are several companies, however, that have deployed solutions, like video scraping technology, to circumvent the rules and violate YouTube’s Terms of Service.  Companies that have negotiated agreements to use our APIs, like TiVo, Sony, Panasonic and PS3 are not impacted.

The first-gut reaction here is to draw a parallel between this move and Hulu’s attempt to prevent video software start-up Boxee from using its stuff.

But in that case, at least, Hulu was trying to restrict access to a data stream it was making freely available to the rest of the world. Here, both sides agree that YouTube requires a contract before it will release its API to commercial partners.

So, the real question is: Did the two companies have an agreement, and what if, anything, has changed recently.

Gentlemen?

[T-shirt image courtesy of Zazzle.com.]

Terms of the deal haven’t been disclosed, but I’m told the transaction values the joint venture at $300 million. Google’s (GOOG) YouTube isn’t an owner in the JV but will share revenue in exchange for lending Vevo its massive distribution platform. The site, which will exist both outside YouTube and within YouTube as a branded channel with its own player, is scheduled to launch later this year.

Vevo has been seeking an outside money source for some time; PaidContent had previously reported the venture was looking for a $300 million valuation.

But the most important part about the outside money is that it’s outside: The investment is designed in large part to allay antitrust issues, given that Vevo’s existing owners represent two of the four major music labels. Providence provided the same cushion to Hulu, which was originally put together by GE’s (GE) NBC Universal and News Corp.’s (NWS) Fox.

Abu Dhabi Media, which is owned by the Abu Dhabi government, has made several forays into Western media, but until now, all of its deals have been focused on Hollywood. Two years ago, for instance, the company announced a $1 billion pact with Time Warner’s (TWX) Warner Brothers to finance movies and build a theme park, though that deal has yet to yield much activity. Earlier this month, it made a much more modest $10 million pledge to back Walter Parkes and Laurie McDonald, the movie producers who once ran DreamWorks studios.

Here’s the release:

VEVO PARTNERS WITH ABU DHABI MEDIA COMPANY

Abu Dhabi Media Company Joins Universal Music Group and Sony Music Entertainment
for World Class Online Premium Music Service

New York, New York, Monday, October 19, 2009…VEVO, the new premium music video and entertainment service powered by YouTube, has received a strategic investment from Abu Dhabi Media Company (ADMC), one of the world’s fastest growing, multi-platform media organizations. The announcement was made today by Doug Morris, Chairman & CEO of Universal Music Group and Co-Chairman/Founder of VEVO, Rolf Schmidt-Holtz, Chief Executive Officer of Sony Music Entertainment & Co-Chairman of VEVO, Rio Caraeff, President & Chief Executive Officer of VEVO, H.E. Mohamed Khalaf Al Mazroui, Chairman of ADMC, and Edward Borgerding, Chief Executive Officer of ADMC. Terms of the agreement were not disclosed.

With this transaction, VEVO is now formed as an independent and fully funded entity with Universal Music Group (UMG), Sony Music Entertainment (SME) and Abu Dhabi Media Company (ADMC) as founding shareholders. Funding from the shareholders will enable VEVO to come to market with an attractive premium music offering for consumers and advertisers alike.

Launching in the United States and Canada later this year with a further international roadmap to be announced, VEVO will be a premium destination and syndication network for the very best in top-notch music video content that will leverage the massive existing traffic of YouTube.

“This global partnership flags Abu Dhabi Media Company’s commitment to establish a leading position in the digital media industry. It is part of an integrated approach to expanding the global digital presence and brand portfolio of Abu Dhabi Media Company, and it illustrates our partnering approach with innovators in digital media services and technologies”, stated H.E. Mohamed Khalaf Al Mazroui, Chairman of ADMC, on joining UMG and SME to create VEVO.

“It’s a credit to the music community, and to the global opportunity that VEVO represents, that we have been able to attract such a solid investment partner with the vision and track record of Abu Dhabi Media Company,” commented Rio Caraeff, President & Chief Executive Officer of VEVO. “Abu Dhabi Media Company brings to the venture important funding support and a team with enormous global media experience and insight, and we look forward to working with them to seize the many opportunities ahead of us.”

“Consumer demand for music video entertainment is growing significantly today and is transforming the digital entertainment market and the music industry by fuelling new media business models. VEVO fits our vision and goals perfectly, as we are expanding our capabilities and continue to build the market for digital entertainment around the world.  VEVO will redefine the way premium music video entertainment is consumed, created and shared in a global community of music audiences,” said Edward Borgerding, Chief Executive Officer of Abu Dhabi Media Company

“We’re now entering a new exciting phase in the digital media industry in the region and we’re determined to be at the forefront of it”, added Ricky Ghai, ADMC’s Executive Director, Digital Group. “With VEVO there’s real opportunity for incredible growth, as both brand advertisers and consumers are looking for new premium video experiences online.”

Last December, talks between Warner and YouTube to renew a licensing deal broke down, and Warner’s videos disappeared from the world’s largest video site. Now, as Advertising Age has reported, an agreement is in the works that will bring Green Day, Madonna and their label-mates back to the site.

What hasn’t been reported, so far: The deal terms themselves. Neither company is talking, but sources familiar with the negotiations tell me the new pact will be similar to the one Google’s (GOOG) video unit struck earlier this year with Universal Music Group.

That deal created Vevo, a sort of “Hulu for music videos,” owned by Universal and Sony (SNE). So think of Warner’s deal as a “son of Vevo.”

The big idea is the same: Try to create more value for videos by limiting their distribution and creating a more ad-friendly atmosphere around them, and share ad revenue between YouTube and the videos’ owner. The big points:

• Unlike Vevo, Warner and YouTube won’t be creating a separate site for Warner videos, and Warner won’t be creating a separate company dedicated to its videos. Instead, YouTube will help Warner create a “premium advertising platform” for its videos within YouTube.
• Warner will take primary responsibility for selling its videos, and YouTube will receive a cut of the revenue.
• Warner will no longer receive a licensing fee each time one of its videos is played.

I gather that a lot of this is still being hashed out, and some of this will evolve even after the deal is inked. For instance, Warner needs to figure out how it’s going to sell advertising for its clips, since it doesn’t have its own sales force. Timing is also up in the air: Even after the two sides formally announce the pact, users shouldn’t expect to see Warner videos instantly reappearing on YouTube; it may be that they only get rolled out as the new ad platform is built.

Then there’s the ad platform itself: I haven’t been able to get a concrete definition of what this is supposed to look like, but for now, I’m imagining something like the “channels” YouTube has made for partners like ESPN, except they’d be made on an artist-by-artist basis.

All in all, this sounds like a fair deal. Warner loses a guaranteed revenue stream, but if its contention about the value of its videos is correct, it will make even more than it did under the old arrangement. Meanwhile, YouTube gets to hang onto “premium” inventory without being locked into the kind of  pay-per-play arrangement that helped drive the site’s expenses sky-high.

The potential downside for YouTube: If this works–or if the Vevo deal works–it will have to create similar packages/portals/platforms to retain or attract other “premium” content suppliers, like, say Hollywood studios. But given that the site has had limited success getting those guys on board so far, that’s not the worst fate in the world.

In the meantime, even though Green Day is Warner act, you can still find plenty of its clips on YouTube–it’s just that most of them are odds and ends like this grainy concert video:

Privately held Plastic Logic says it will rely on AT&T (T) to supply its gadgets with a wireless connection, in the same way that Sprint (S) is the network provider for Amazon’s Kindle.

It’s the second big partnership Plastic Logic has unveiled this week; yesterday, it linked up with Barnes & Noble (BKS), which will be its virtual bookstore. I’m guessing it’s not a coincidence that Amazon (AMZN) announces its earnings Thursday afternoon.

Even if Plastic Logic’s reader becomes as successful as the Kindle, it’s unlikely this will be hugely significant for AT&T, the wireless company iPhone users love to complain about.

Each Apple (AAPL) phone on AT&T’s network represents $30 in monthly data charges alone, plus fees for a voice plan. But while Sprint and Amazon haven’t disclosed their terms, it’s estimated that Amazon pays Sprint something like $2 per Kindle user, per month.

Who actually made the move to drop the label’s content from the world’s biggest video site is a matter of dispute, though. Both sides are taking credit for the decision.

Here’s Warner Music (WMG)’s statement:

We are working actively to find a resolution with YouTube that would enable the return of our artists’ content to the site. Until then, we simply cannot accept terms that fail to appropriately and fairly compensate recording artists, songwriters, labels and publishers for the value they provide.”

But a person familiar with the situation tells me that the two companies were close to an agreement until recently, when Warner changed its terms. In response, Google (GOOG) made the move to yank the label’s content.

Google’s blog post about the matter is more oblique. But note that it doesn’t say it is taking the music down at Warner’s request:

Sometimes, if we can’t reach acceptable business terms, we must part ways with successful partners. For example, you may notice videos that contain music owned by Warner Music Group being blocked from the site.”

As I explained yesterday, music videos are some of the most popular content on YouTube. But the videos are also money losers for the video site because it has to pay the labels each time someone views a clip, regardless of whether it’s generating any revenue. YouTube’s contracts with all of the the big labels–in addition to Warner, it has pacts with Sony (SNE), Universal Music Group and EMI–are set to expire in the near future, so there are multiple games of chicken to watch here.

Meanwhile, taking down an entire music company’s catalog can take quite a while, which means that if you head to YouTube right now, you can still find plenty of Warner stuff  there–like the Madonna channel, which has golden oldies like this one: