Universal Music Group has issued a warning, stating that it would remove its songs from TikTok due to a breakdown in negotiations with the social media platform. The open letter from Universal accuses TikTok of attempting to build a music-based business without offering fair compensation to artists and songwriters.
While both parties were negotiating the terms of a new agreement, their existing contract was set to expire on Wednesday, and as of now, it has not been renewed. The letter highlighted various issues discussed during the talks, including the need for appropriate compensation for artists and songwriters, online safety for users, and protection from the potential negative impacts of artificial intelligence.
Universal Music Group expressed dissatisfaction with TikTok’s proposed deal, stating that the platform attempted to pressure them into accepting an agreement worth less than the previous one, significantly below fair market value, and not reflective of TikTok’s substantial growth.
Major music companies receive royalty payments from streaming and social media platforms, and Universal argued that TikTok’s proposed payment rate was only a fraction of what other similarly situated major social platforms pay.
TikTok responded with disappointment, accusing Universal Music Group of prioritizing its own interests over those of its artists. TikTok claimed that Universal had chosen to walk away from a platform with well over a billion users, which serves as a free promotional and discovery vehicle for their talent. The social media giant disputed Universal’s characterizations as false and emphasized the powerful support TikTok provides to artists.
Post Your Comments