TikTok And Universal Music Fail To Reach Terms In Content Licensing Negotiations

Universal Music Group (UMG) has announced its decision to stop licensing its content to TikTok and TikTok Music services. The music label revealed on Tuesday that it has not renewed its agreement with the social media platform. UMG has been engaged in contract renewal discussions with TikTok, emphasizing the need for fair compensation for artists and songwriters.

If an agreement is not reached by the expiration of the deal on Wednesday, all UMG songs will be removed from the TikTok platform, according to a spokesperson from UMG. In a letter to its artist and songwriter community, UMG accused TikTok of attempting to establish a music-based business without offering fair compensation for the music.

UMG highlighted TikTok's proposal to pay artists and songwriters at a rate significantly lower than what other major social platforms pay for similar content. In response, TikTok labeled UMG's narrative as "false" and asserted that UMG's actions were not in the best interests of artists, songwriters, and fans.

Despite TikTok accounting for only approximately 1% of UMG's total revenue, the music label is taking a stand on the principle of fair compensation. The two entities had previously reached a deal in February 2021, allowing TikTok users to incorporate clips from UMG's music catalog into their videos.