YouTube will remove music videos by artists such as Adele, Arctic Monkeys and Radiohead, because the independent labels to which they belong have refused to agree terms with the site.
Google, which owns YouTube, has been renegotiating contracts with record companies, as it prepares to launch a music subscription service.
Some independents say they are being offered "highly unfavourable terms".
YouTube says it is bringing its music partners "new revenue streams".
Speaking to the Financial Times, Robert Kyncl, YouTube's head of content and business operations, said videos from independents could be blocked "in a matter of days".
The three major labels - Universal, Sony and Warner - have all agreed terms with the site, but smaller independents are holding out.
Singer Billy Bragg and Radiohead guitarist Ed O'Brien have accused Google of trying to "strong-arm" labels into accepting low fees.
Impala, a body which represents the labels - including XL Recordings, 4AD, Cooking Vinyl and Domino - has appealed to the European Commission for help with its battle against YouTube.
Mr O'Brien, who co-chairs musicians' rights campaign group the Featured Artists Coalition, said YouTube is at risk of "creating an internet just for the superstars and big businesses" with this move.
The BBC understands that even if blocks do go ahead, content from artists signed to independent labels will remain available on YouTube via channels such as Vevo.
A YouTube spokesman told the BBC: "Our goal is to continue making YouTube an amazing music experience, both as a global platform for fans and artists to connect, and as a revenue source for the music industry.
"We're adding subscription-based features for music on YouTube with this in mind - to bring our music partners new revenue streams in addition to the hundreds of millions of dollars YouTube already generates for them each year.
"We are excited that hundreds of major and independent labels are already partnering with us."
YouTube's entry into the music subscription market comes after Amazon launched a similar service for its Prime members, and Apple bought online music service Beats Music.
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