Renowned Universal Music Group (UMG) will stop licensing its content to TikTok and TikTok Music services. According to the music label on Tuesday, this is because its agreement with the social media platform had not been extended.
UMG had allegedly been pressing TikTok for appropriate artist and songwriter compensations in their contract renewal talks, among other requests, according to a letter addressed to its artist and songwriter community.
On Wednesday, January 31, a UMG spokesperson revealed that if UMG fails to reach an agreement with TikTok, all of its songs will be removed from the platform immediately the deal expires.
UMG had also in the letter, accused TikTok of “trying to build a music-based business, without paying a fair price for the music.”
Furthermore, UMG alleged that TikTok had suggested paying artists and songwriters at a rate that “is a fraction of the rate” that identically situated major social platforms pay.
Tiktok, had meanwhile, in a statement to Reuters, said that UMG’s narrative was “false” and that the music label’s actions were not in the best interests of artists, songwriters and fans alike.
The music label had said that TikTok accounts for only about 1% of UMG’s total revenue.
In February 2021, UMG brokered a deal with TikTok, which allowed users on the app to be able to incorporate clips from UMG’s music catalog on their videos.
