Universal Music Group (UMG), the world’s largest music company, is on the brink of pulling its extensive song catalog, including hits by Taylor Swift and Harry Styles, from TikTok.
The impending move comes as the current agreement between UMG and TikTok is set to expire in the next 24 hours.
In a strongly worded letter titled “Why we must call Time Out on TikTok,” published on Tuesday, UMG accused TikTok of attempting to strong-arm them into accepting a deal significantly undervaluing their music.
The dispute centres around issues such as artiste compensation and the use of artificial intelligence (AI) on the platform.
TikTok, owned by the Chinese company ByteDance, faces the potential removal of globally popular tracks if an agreement is not reached with UMG.
Quest Times further reports that one notable hit, Sophie Ellis-Bextor’s “Murder on the Dancefloor,” has gained traction on TikTok recently.
UMG claimed that TikTok represents only about 1% of its total revenue, alleging insufficient compensation for artistes and songwriters despite TikTok’s substantial user base and growing advertising revenue.
The music giant further accused TikTok of employing tactics to intimidate during negotiations, including selectively removing music from certain artistes.
In response, TikTok contended that UMG prioritizes greed over the interests of its artistes and songwriters.
The social media platform argued that it serves as a powerful promotional tool for UMG’s talent, reaching over a billion users.
The dispute intensified as TikTok explored music creation and AI with features like TikTok Music and an “AI Song” pilot.
Moreover, UMG raised concerns about TikTok flooding the platform with AI-generated recordings, accusing it of sponsoring artiste replacement by AI.
TikTok, however, defended its commitment to supporting artistes and songwriters while emphasizing its agreements with other major music companies.