Universal Music Group Removes Songs from TikTok
Universal Music Group (UMG) has announced that it will stop licensing its content to TikTok and TikTok Music services as its agreement with the social media giant has not been renewed. UMG, which controls about a third of the world's music, removed all of its songs from TikTok after their deal expired on Wednesday.
In an open letter to its artist and songwriter community, UMG expressed concerns about fair compensation, accusing TikTok of attempting to "build a music-based business without paying fair value for the music." The music label claimed that TikTok proposed paying artists and songwriters at a rate that is a "fraction of the rate" other major social platforms pay.
TikTok, responding to UMG's accusations, called them "false" and asserted that UMG's actions were not in the best interests of artists, songwriters, and fans. Despite TikTok having over a billion users, UMG clarified that the platform accounts for only about 1% of its total revenue. The dispute arises as UMG presses for appropriate compensations in their contract renewal discussions with TikTok.
This move by UMG marks the first time the music giant has taken the significant step of removing its songs from a technology platform. The company holds the rights to a vast array of artists, including Taylor Swift, The Weeknd, Noah Kahan, and Drake. While UMG expressed concerns about protecting artists from the harmful effects of AI and ensuring online safety, TikTok accused UMG of putting "greed above the interests of their artists and songwriters" by walking away from a platform that serves as a free promotional and discovery vehicle for talent. The music label had previously reached a deal with TikTok in February 2021, allowing users to incorporate UMG's music catalogue into their videos.
