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Universal Music, TikTok Fail To Reach New Licensing Agreement

UMG accused TikTok of “trying to build a music-based business, without paying fair value for the music.”

Universal Music Group (UMG) has on Tuesday, announced that it will cease licensing its content to TikTok and TikTok Music services, stating that its agreement with the social media platform has not been renewed.

In a statement addressed to its artist and songwriter community, the music label stated that, among other things, it has been pressuring TikTok for adequate artist and songwriter compensations in their contract renewal conversations.

UMG Spokesperson said “If UMG fails to reach an agreement with TikTok, all of its songs will be removed from the service once the deal expires on Wednesday”

In its letter, UMG accused TikTok of “trying to build a music-based business, without paying fair value for the music.”

The group also said TikTok proposed paying artists and songwriters at a rate that is a “fraction of the rate” that similarly situated major social platforms pay.

TikTok, in a statement, referred to UMG’s narrative as “false” and said UMG’s actions were not in the best interests of artists, songwriters and fans.

TikTok accounts for only about 1% of UMG’s total revenue, the music label said.

The company had reached a deal with social media platform TikTok in February 2021, which allowed users on the app to be able to incorporate clips from UMG’s music catalogue on their videos.

Chioma Kalu

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