Universal Music Group (UMG) has declared the cessation of content licencing to TikTok and TikTok Music services, citing the failure to renew their agreement with the social media platform.
In a communication directed to its artist and songwriter community, UMG highlighted ongoing contract renewal discussions with TikTok. The key focus of these negotiations has been securing fair compensation for artists and songwriters, with UMG stressing the significance of appropriate remuneration.
Should UMG and TikTok fail to reach an agreement, all UMG songs will be withdrawn from the platform upon the expiration of the deal on Wednesday, as confirmed by a UMG spokesperson.
In its letter, Universal Music Group accused TikTok of undervaluing music in its pursuit of a music-centric business. UMG asserted that TikTok proposed compensating artists and songwriters at a rate significantly lower than what other major social platforms offer in similar situations.
TikTok contested UMG’s claim, arguing that their actions were not in the best interest of artists, songwriters, and fans. It’s important to note that TikTok constitutes only about 1% of UMG’s overall revenue.
Back in February 2021, UMG and TikTok had struck a deal allowing TikTok users to incorporate clips from UMG’s extensive music catalogue in their videos, enhancing creative possibilities and musical experiences within the app.
