UMG has terminated its licencing arrangement with TikTok, claiming failed contract renewal discussions.
UMG has terminated its licencing arrangement with TikTok, claiming failed contract renewal discussions.

UMG to Stop Licensing Content to TikTok Amid Contract Dispute

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Universal Music Group (UMG) has terminated its licensing agreement with TikTok, citing failed contract renewal discussions. 

The music label revealed that TikTok’s proposed compensation for artists and songwriters was inadequate, leading to the decision to cease licensing its content to the social media platform.

Expiry of Agreement and Potential Removal of Songs:

If UMG and TikTok do not reach a new agreement by the expiry date on Wednesday, all of UMG’s songs will be removed from TikTok. 

The move follows UMG’s claims that TikTok is attempting to build a music-based business without offering fair compensation for the music.

Dispute Over Artist and Songwriter Compensation:

UMG alleges that TikTok’s proposed payment rate for artists and songwriters is a “fraction” of what other major social platforms pay. 

During contract renewal negotiations, the music label has been pressing TikTok for appropriate compensation for its artists and songwriters.

TikTok Responds to UMG’s Claims:

TikTok responded to UMG’s accusations, calling them “false” and asserting that UMG’s actions were not in the best interests of artists, songwriters, and fans. 

TikTok, which contributes about 1% to UMG’s total revenue, expressed disagreement with UMG’s portrayal of the situation.

Joshua Skate

Joshua Skate is a prominent contributor at Insider Los Angeles, known for his vibrant storytelling and deep dive into the city's culture, trends, and hidden gems. His pieces bring to life the unique spirit and diversity of Los Angeles, making him a go-to source for all things LA.

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