Universal Music Group (UMG) has announced that it will stop licensing its music to TikTok and TikTok Music services. The decision comes as UMG revealed that its agreement with the popular social media platform has not been renewed.
UMG, in a letter addressed to its artists and songwriters, stated that it had been pushing TikTok for fair compensation for its artists and songwriters during their contract renewal talks. The music label emphasized the need for appropriate payments among other considerations.
If a new agreement isn't reached between UMG and TikTok, all UMG songs will be removed from the platform once the current deal expires on Wednesday, according to a spokesperson for UMG.
In the letter, UMG criticized TikTok, accusing the platform of attempting to build a music-focused business without adequately compensating artists. UMG highlighted TikTok's proposed payment rates for artists and songwriters as significantly lower compared to other major social media platforms.
TikTok, responding to UMG's claims, dismissed them as "false" and asserted that UMG's actions were not in the best interests of artists, songwriters, and fans.
Despite being a popular platform, TikTok contributes only about 1% of UMG's total revenue, the music label revealed.
UMG had previously struck a deal with TikTok in February 2021, allowing users to incorporate clips from UMG's extensive music catalog into their videos.
