Universal Music has decided to remove its extensive music catalogue from TikTok due to a disagreement regarding payment terms.
Universal criticised TikTok for its behaviour and expressed a desire to pay a lower rate compared to other social media platforms for accessing its extensive catalogue.
TikTok strongly refuted Universal’s claims, calling them misleading and unfounded.
Music companies receive royalty payments when their songs are played on streaming and social media platforms.
Despite having over one billion users, TikTok’s contribution to Universal’s total revenue is only 1%, according to the label.
Universal recently addressed the artist and songwriter community, expressing concerns about TikTok’s approach to building a music-based business. According to Universal, TikTok may not be compensating artists fairly for their music.
Universal also expressed their commitment to advocating for fair compensation for their artists and songwriters. Additionally, they emphasised the importance of safeguarding human artists from the potential negative impacts of AI and ensuring online safety for TikTok’s users.
The company announced that it will no longer be licencing its content to TikTok after the expiration of their contract on 31 January.
TikTok expressed disappointment over Universal Music Group’s prioritisation of greed over the well-being of their artists and songwriters.
“In contrast to Universal’s claims, they have made the decision to abandon the valuable backing of a platform that reaches over a billion users and provides a free avenue for promoting and discovering their talent,” the statement stated.
Universal has made a significant move by withdrawing its songs from a technology company’s platform.
Universal is a major player in the global recorded music industry. It boasts an impressive roster of artists, ranging from legendary acts like the Beatles, Elton John, and Coldplay to modern sensations like Adele, BTS, and Blackpink.
It also possesses Sophie Ellis-Bextor’s Murder on the Dancefloor, which has gained popularity on TikTok as of late.
Last year in July, Warner Music, one of the largest recorded music companies globally, entered into a new licencing agreement with TikTok.