Universal Music Group said it will no longer license content to TikTok after failed negotiations over issues of artist compensation. The music group said it is best to part ways with the social media platform.
“The companies have not agreed to terms for a new agreement and upon expiration of the current agreement, Universal Music Group, including Universal Music Publishing Group, will cease licensing content to TikTok and TikTok Music services,” the company said in a statement.
In response to UMG, TikTok said in a statement, “It is 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.”
Universal accused TikTok for taking advantage of the situation, not negotiating in good faith and using bullying tactics during negotiations.
“TikTok’s tactics are obvious: use its platform power to hurt vulnerable artists and try to intimidate us into conceding to a bad deal that undervalues music and shortchanges artists and songwriters as well as their fans,” UMG said. “We will never do that. We will always fight for our artists and songwriters and stand up for the creative and commercial value of music.”
TikTok, owned by Chinese internet conglomerate ByteDance, is the massively popular short-form video app whose core features let users create and share videos using licensed music and other sounds.
TikTok holds similar agreements with music companies including Sony and Warner Music, the jury still out if they share the same sentiments as Universal Music Group.
