Universal Music Group, the world's biggest music company has threatened to pull its songs from TikTok over a licensing dispute. The music label announced the move in an open letter to artists and songwriters titled ''Why we must call time out on TikTok.'' The label said a music licensing agreement between UMG and TikTok expired on Wednesday, and new terms have yet to be agreed on.
As per BBC, music companies earn royalty payments when their songs are played on streaming and social media platforms.
“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.
The letter explained that UMG has been pressing TikTok on three key issues: appropriate compensation for artists and songwriters, protecting human artists from the dangers of AI, and online safety for TikTok users.
The music label also accused TikTok of attempting to ''bully and intimidate them into accepting a deal worth less than the previous deal, far less than fair market value and not reflective of their exponential growth.''
''TikTok proposed paying our artists and songwriters at a rate that is a fraction of the rate that similarly situated major social platforms pay,'' it continued, adding that TikTok currently only accounts for about 1 percent of UMG revenue.
Notably, TikTok, owned by Chinese company ByteDance, is a social media app that allows users to make short-form videos. It is one of the most popular social media platforms globally, with more than one billion users.
In response, TikTok said: "It is sad and disappointing that Universal Music Group has put their 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. Universal's self-serving actions are not in the best interests of artists, songwriters, and fans,'' TikTok added.
Universal holds the rights to some of the world's biggest artists like Taylor Swift, Ariana Grande, Justin Bieber, Coldplay, The Weeknd, Drake, Bob Dylan, Adele, and Billie Eilish.
