I doubt Google would be liable for such expenses.
I know that sounds sarcastic, but it's actually how a lot of artists behave and speak.
To add a firsthand story, I am a part of an online music community, OverClocked Remix (http://ocremix.org ), that had to craft a formal content policy agreement for legal reasons to protect itself in the event a game publisher/rights owner decided to sue the site for hosting rearranged music from one of their games (the site only sells officially licensed music - the rest is free), or if an artist imposed many fickle demands such as 5+ artist handle change requests or a sudden takedown request of a track, which would affect distribution methods such as torrents. The site solicited feedback from the community, and we came to the decision to require a non-exclusive right to distribute with an identifier of our copyright (meta information in ID3v2 tags and the file name), no DRM), while the artists would maintain full rights of their track. Termination of distribution is left at the site's hands.
A few artists balked at this, and expressed strong disagreements based on the view that artists should retain full rights over distribution. They ultimately signed and most, even those who complained, ended up content with it.
It's extortion. So your characterization is flawed. When videos are not popular, unsurprisingly, you aren't selected to be extorted.
In the business world, this is known as negotiation. It's normal and ethical. Here, it's like being in a big store. You can buy the thing on the shelf or not, but you don't get to haggle over the price.
Zoe wants to haggle over the price until it's something convenient for her.
> I'd suggest simply hiring a third party to monitor Google and send appropriate take-down notices.
This is abuse. This will have a chilling effect on free expression.
Shame on YouTube, quite seriously - I didn't cost Daft Punk anything!
But I would certainly object to calling a Starbucks purchase a "negotiation". It is not.
I do see your point, though. It's not really a negotiation. There's not enough money involved to be worth negotiating over. It's a service being sold.
Isn't this the exact opposite of a negotiation? By definition, doesn't "negotiation" imply that both parties enter into a discussion in an attempt to reach an agreement.
When you buy a cup of coffee, Starbucks doesn't force you to sign a legal document saying that you will only drink Starbucks coffee for the next five years, or that whenever you buy a cup of coffee from somewhere else you must simultaneously buy a cup from Starbucks. Also, if you refuse to buy the cup of coffee, Starbucks will not post your picture in every branch in the country to prevent you from ever buying a cup of coffee from them again.
That happens in every line of business and we accept this. Why is this one different.
If any other online hosting service (with substantial network or lock-in effects) changed their terms to give themselves rights to host and slap ads on any of your other public output there would be an outcry. Why is this one different?
cough cough Facebook cough cough
Right now, YouTube is already in music business. They are just shifting model.
Google has DMCA takedown capabilities. I'd suggest simply hiring a third party to monitor Google and send appropriate take-down notices. Then, on an annual basis, submit the invoice to Google. It's dirty pool, but then again, when has the music industry ever been a transparent and constructive and profitable enterprise for anybody outside of the top 1% of performers/acts/songwriters?