Universal Music Group is threatening to pull the music of several of its recording artists from TikTok. UMG shared an open letter on Jan. 30 announcing its decision to call for a “time out” with the social media platform over failed contract negotiations.
The contract between TikTok and UMG expires at midnight on Jan. 31, and the music company claims TikTok is not paying “appropriate compensation” for their artists and songwriters. The company also claimed that the social media platform does not do enough to protect its artists from AI. According to Axios, Universal Music Group controls nearly one-third of the world’s music market, including artists such as Nicki Minaj, Drake, Taylor Swift, The Weeknd, BTS and more.
“With respect to the issue of artist and songwriter compensation, TikTok proposed paying our artists and songwriters at a rate that is a fraction of the rate that similarly situated major social platforms pay,” says the UMG statement. “Today, as an indication of how little TikTok compensates artists and songwriters, despite its massive and growing user base, rapidly rising advertising revenue and increasing reliance on music-based content, TikTok accounts for only about 1% of our total revenue.”
Ultimately TikTok is trying to build a music-based business, without paying fair value for the music,” added UMG.
The company also claimed that TikTok “makes little effort” to deal with content on its platform that infringes on artists’ music and has “offered no meaningful solutions” to hate speech, bigotry, bullying and harassment on the platform, including “pornographic deepfakes of artists.”
UMG also accused TikTok of trying to “bully” them into a deal. “When we proposed that TikTok takes similar steps as our other platform partners to try to address these issues, it responded first with indifference, and then with intimidation.”
As a result of the failed negotiations, UMG said it will pull all of its music from the platform when the current contract ends. TikTok responded by accusing UMG of being greedy and of failing its artists.
“It is sad and disappointing that Universal Music Group has put their own greed above the interests of their artists and songwriters,” they wrote. “Despite Universal’s false narrative and rhetoric, the fact is they have chosen to walk away from the powerful support of a platform with well over a billion users that serves as a free promotional and discovery vehicle for their talent. TikTok has been able to reach ‘artist-first’ agreements with every other label and publisher. Clearly, Universal’s self-serving actions are not in the best interests of artists, songwriters and fans.”
Other major artists that would be affected by the deal include Rihanna, Kanye West, Eminem, Adele, Billie Eilish, SZA, Kendrick Lamar, Justin Bieber, Sting, and more.
Reactions on X were mixed as fans learned the news. One fan replied that UMG made the right call. “I’m all for this, I believe tiktok has ruined the way music reaches people. It waters down the art form into a sound bite.” Another disagreed and sided with TikTok. “Fair usage should at least be allowed, Most of these artists’ songs went viral from Tik Tok! Tik Tok is a great platform for discovering new music, UMG is wrong on this one. It’s not a wise business decision at all.”
“Or maybe it’s TikTok’s greed for not being able to make a deal,” added another. “Damn the end of tik tok is near,” noted one.
Considering the statements of both Universal Music Group and TikTok, it is unlikely that either side will concede.
