Universal Music, TikTok fail to reach new licensing agreement
(Reuters) – January 30 The Due to the fact that the music label announced on Tuesday that its relationship with the social media platform has not been renewed, Universal Music Group (UMG) (UMG.AS), opens new tab will no longer license its material to TikTok and TikTok Music services.
In addition to other things, UMG stated in a statement that was addressed to its artist and songwriter community that it has been exerting pressure on TikTok to provide proper compensations for artists and songwriters during the course of their contract renewal conversations.
Unless UMG and TikTok reach an agreement, all of its songs will be taken from the app on Wednesday, a spokeswoman said.
UMG wrote that TikTok was “trying to build a music-based business, without paying fair value for the music.”
UMG said TikTok will pay musicians and composers a “fraction of the rate” of major social networks.
Tiktok told Reuters that UMG’s narrative was “false” and that its actions hurt artists, songwriters, and fans.
The music firm says TikTok generates 1% of UMG’s revenue.
In February 2021, UMG signed a partnership with TikTok to let users use UMG music in their videos.