Universal Music Group is poised to withdraw its extensive catalog of songs from TikTok.
TikTok and the music company Universal Music Group which represents megastars from Taylor Swift, Drake, Billie Eilish and Ariana Grande couldn’t see eye to eye on a new deal.
Universal Music Group Accusation
The label wrote – “TikTok proposed paying our artists and songwriters at a rate that is a fraction of the rate that similarly situated major social platforms pay”. “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.”
The main issues from Universal Music Group were fair payment for artists and safeguarding against AI-generated content affecting royalties. They highlighted that it is considerably lower than what other major social platforms offer.
Tik Tok’s Counter
In response, TikTok accused the music company of prioritizing greed over the well-being of artists and songwriters.
They said “It’s sad and disappointing that Universal Music Group has put their own greed above the interests of their artists and songwriters. 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.”
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