Warner Music have pulled their tracks from Last.fm's previously reported on-demand streaming preview service, seemingly in a dispute over royalty rates. Billboard report that the CBS owned music networking service starting taking the major's music off their preview platform late last week at the request of the record company. The company has since said in a statement: "We are currently negotiating a new agreement with Warner Music Group and are working hard to build the most comprehensive music service on the web".
The dispute with Warner seemingly only affects Last.fm's on-demand preview service, which launched earlier this year - the major's music still appears in the music website's internet radio service. Although the first major to sign up to the new Last.fm preview system, Warner reportedly had a month-to-month contract with the company, allowing them to pull their content quickly if royalty discussions didn't work out. Billboard quote a source as saying Warner feel Last.fm's financial offer is "completely out of whack" compared to that being offered by other online music services like MySpace and Imeem.