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Universal Music Group starts to pull music from TikTok over failed contract negotiations

The licensing agreement between the two companies expired on January 31st

TikTok on phone

Olivia Rodrigo and Taylor Swift are among several artists to have their music catalogues removed from TikTok under a rift between the platform and Universal Music Group (UMG).

A contract between the two entities expired on January 31st, 2024. At the time of writing, the parties had not reached a new agreement as they continued to throw accusations at one another.

UMG said it focused on three issues during contract negotiations: “appropriate compensations,” protecting artists from the harms of AI, and the safety of the platform’s users, according to an open letter posted on its website.

Regarding compensation, UMG said TikTok’s proposal would pay artists a “fraction of the rate” other social platforms in a similar situation pay. “Ultimately TikTok is trying to build a music-based business, without paying fair value for the music,” the company wrote.

UMG has removed Olivia Rodrigo’s music from TikTok. Image credit: TikTok/screenshot

The music corporation further accused TikTok of demanding musical content generated by AI get contractual rights, taking away revenue from human artists.

UMG said TikTok “responded first with indifference, and then with intimidation” when it asked the platform to address the issues, as other platforms have done. The corporation says the social media platform started removing music from developing artists from the platform in an attempt to “bully” them but didn’t apply the same action to “global stars.”

UMG started removing music under its label on Wednesday.

In its response, TikTok accuses UMG of putting its “own greed” first.

“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,” the company said in a news post.

The platform says it has reached agreements that put artists first with other labels. “Clearly, Universal’s self-serving actions are not in the best interests of artists, songwriters and fans.”

Source: UMG, TikTok

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