Universal Music Group, which owns the rights to superstars such as Taylor Swift, Olivia Rodrigo, Billie Eilish and Drake, announced on Wednesday that it would be closing down TikTok after the two companies failed to reach an agreement on key issues such as artist compensation. He threatened to revoke his license.
The world’s biggest music company wants TikTok to pay artists more and address the growing trend of using artificial intelligence to create music on the Chinese-owned video-sharing app.
The revocation of TikTok’s license, which expires on Wednesday, could be a devastating blow to the app, as about 60% of videos posted to the platform include music.
“TikTok offered to pay artists and songwriters a fraction of the fees paid by similarly located major social platforms,” UMG said.
“As our negotiations continue, TikTok bullies us into a deal that is less valuable than the previous deal, one that is far below fair market value and does not reflect its rapid growth. I tried to get him to accept it.”
The company did not say how much it paid in its last deal or how much more it is seeking from TikTok, which has an estimated 1.5 billion monthly users.
TikTok hit back with its own scathing response early Wednesday, accusing music companies of “putting their own desires ahead of the interests of artists and songwriters.”
UMG said TikTok musicians accounted for just 1% of the company’s ad revenue despite representing eight out of the 10 most popular bands and singers on the social media site last year. .
in Open letter to artists On Tuesday, UMG wrote, “Why should we call time out on TikTok?” and wrote, “At the end of the day, TikTok is trying to build a music-based business without paying fair value for its music.”
The company added that it is concerned about the increase in artificial intelligence tools being used in TikTok videos and its impact on intellectual property, while also being dissatisfied with the amount of copyright infringement. The site also cited a “wave of hate speech, bigotry, bullying and harassment.”
The record giant also claimed that TikTok tried to blackmail the company by “selectively removing the music of some developing artists” while retaining “worldwide stars who drive viewership.” .
TikTok did not specifically respond to the allegations, but accused the label of “false narratives and rhetoric” and noted in a statement that it was able to secure deals with other major music labels. Posted Tuesday’s X.
Last year, the company signed a music licensing deal with Warner Music Group, which represents Madonna, Lizzo and Ed Sheeran.
TikTok added: “The fact is they have chosen to walk away from the strong support of a platform with well over 1 billion users that serves as a means of free promotion and discovery of talent.”
