Warner Music has announced plans to stop licensing its songs to free music streaming services such as Spotify.
The label said the companies, which also include Last.fm and We7, were “not positive for the industry”.
"The get all your music you want for free, and then maybe with a few bells and whistles we can move you to a premium price strategy, is not the kind of approach to business that we will be supporting in the future,” said Edgar Bronfman Jr, chief executive of Warner.
Instead Warner, one of the four major labels, will focus on supporting subscription-based services, he added.
The decision has cast doubt over the future of free streaming services, many of which offer instant access to millions of songs.
At present, it is not clear whether Warner's announcement will impact existing deals or potential new agreements with other companies, reports the BBC.
The popularity of free online music streaming has ballooned in recent years, with Spotify emerging as a front runner.
The company has more than seven million users in Europe, but only five percent subscribe to its pay-monthly service.