Universal Music Removes All Its Songs from TikTok Due to Failed Payment Negotiations

Universal Music Group (UMG), the world's largest music industry leader, has announced the withdrawal of all its songs from the social network TikTok after negotiations with the platform failed to reach a deal on remuneration for artists and songwriters, the music giant said. 

The current cooperation agreement between Universal Music and TikTok also expires today. 

In its open letter, Universal directly accused TikTok of "trying to build a business based on music without paying fair value for music". 

The two sides discussed the terms of a new deal, as the current agreement expires on Wednesday. However, the deal was not extended. In a statement, TikTok said that the company is "saddened and disappointed that Universal Music Group has put its own greed ahead of the interests of its artists".

Among the issues raised during the negotiations were "appropriate compensation" for artists and songwriters, online security for users, and protection of artists from the harm of artificial intelligence, the UMG letter added.

"But during the negotiations, TikTok tried to intimidate us into agreeing to a deal that was worth less than the previous agreement, well below fair market value, and did not reflect exponential growth," Universal said.

Major record labels receive royalties from streaming platforms and social media. Universal, however, said that TikTok is offering to pay "a rate that is only a fraction of the rate paid by major platforms in a similar situation."

Calling Universal's claims "untrue", TikTok said the record label "has decided to withdraw its strong support for a platform that has over a billion users and serves as a vehicle for the promotion and free discovery of their talents". 

Taylor Swift, The Weeknd, and Black Pink are among the biggest stars to sign with Universal Music Group.

As The Gaze previously wrote, the European Parliament has called on music streaming platforms to ensure higher remuneration for artists and a fairer distribution of rewards for performers.