Universal Music Group announced that it may remove its music from TikTok due to a dispute over compensation.
The company claims that TikTok proposed paying artists and songwriters a fraction of what other major platforms pay and accused TikTok of trying to build a music-based business without fairly compensating the music.
UMG also accused TikTok of using AI tools that could have negative outcomes and selectively removing music.
“TikTok proposed paying our artists and songwriters at a rate that is a fraction of the rate that similarly situated major social platforms pay,” the letter read.
“Ultimately TikTok is trying to build a music-based business, without paying fair value for the music.”
“As our negotiations continued, TikTok attempted to bully us into accepting a deal worth less than the previous deal, far less than fair market value and not reflective of their exponential growth,” the letter said.
“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,” the letter 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 responded, expressing disappointment and accusing UMG of prioritizing greed over the interests of their artists and songwriters.
They noted that they have reached agreements with other labels and publishers and accused UMG of having self-serving interests.
It is “sad and disappointing” that UMG has decided to “put their own greed above the interests of their artists and songwriters,” TikTok stated.
“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 promotion and discovery vehicle for their talent.”
