Universal Music warns it will pull songs from TikTok

Universal Music Group warned Tuesday that it would pull its songs from TikTok, after a breakdown in talks with the social media platform over issues including the compensation of artists and songwriters.

In an open letter, Universal accused TikTok of “trying to build a music-based business, without paying fair value for the music.”

Both sides have been discussing the terms of a new agreement, with their existing contract set to expire on Wednesday.

But their deal has not been renewed.

Among the issues raised in talks were “appropriate compensation” for artists and songwriters, online safety for users, as well as the protection of artists from the harms of artificial intelligence, the letter added. But as negotiations proceeded, Universal said, “TikTok attempted to bully us into accepting a deal worth less than the previous deal, far less than fair market value and not reflective of their exponential growth.”

Major music companies earn royalty payments from streaming and social media platforms.

Universal said, however, that TikTok proposed paying “a rate that is a fraction of the rate that similarly situated major social platforms pay.”

In a statement TikTok said it was “sad and disappointing that Universal Music Group has put their own greed above the interests of their artists.” Calling Universal’s characterizations “false,” the social media giant said the label had “chosen to walk away from the powerful support of a platform with well over a billion users that serves as a free promotional and discovery vehicle for their talent.”

Despite TikTok’s large user base, it accounts for just about one percent of Universal’s total revenue, the label said.