UMG to cease licensing content to TikTok

Universal Music Group (UMG) has announced that it will no longer license its content to TikTok and TikTok Music services following a failure to renew its agreement with the social media platform.

In a letter addressed to its artist and songwriter community, UMG (Universal Music Group) stated that it has been engaged in contract renewal discussions with TikTok. Among various matters, UMG has been advocating for fair compensation for artists and songwriters, emphasizing the importance of appropriate remuneration in these negotiations.

If UMG does not agree with TikTok, all of UMG’s songs will be removed from the platform when the deal expires on Wednesday, according to a UMG spokesperson.

In its letter, Universal Music Group accused TikTok of not paying fair value for the music in their attempt to create a music-based business.

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UMG 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 denied UMG’s claim, stating that their actions were not in the best interest of artists, songwriters, and fans. TikTok only accounts for about 1% of UMG’s revenue.

In February 2021, UMG reached a deal with TikTok granting TikTok users the ability to include clips from UMG’s extensive music catalog in their videos, enhancing the creative possibilities and musical experiences within the app.