Universal Music Group (UMG), home to artistes like Taylor Swift and The Weeknd, threatened Tuesday to pull its music from TikTok after talks over licensing and artist compensation broke down.
The decision, announced in an open letter on Tuesday, stems from disagreements over artiste compensation, user safety, and the use of artificial intelligence (AI) on the wildly popular video platform.
UMG also accused TikTok of “bullying” them into accepting an unfair deal and failing to adequately pay artists for their work.
UMG accused TikTok of “building a music-based business without paying fair value for the music,” citing a proposed royalty rate “far less than fair market value” compared to other platforms. They criticised TikTok’s “attempts to bully us” into accepting a disadvantageous deal.
TikTok countered, calling UMG’s claims “false” and accusing the label of prioritising “greed” over the interests of their artistes.
They stressed the promotional power of their platform and claimed UMG was walking away from a billion-user audience.
Sources familiar with the matter confirmed the removal of all UMG music from TikTok starting January 31st, according to AFP.
While TikTok boasts over a billion users, it reportedly represents only a small fraction of UMG’s total revenue.
However, UMG expressed additional concerns beyond finances. They pointed to the prevalence of AI-generated recordings on TikTok and a lack of effort to address music copyright infringements.
