Universal Music Group NV, the world’s largest record label featuring renowned artists like Taylor Swift and Drake, has initiated the removal of its music from the TikTok platform following unsuccessful contract negotiations between the two entities.
After months of unproductive discussions, the label has opted to withdraw its songs from the short-form video app owned by ByteDance Ltd. This decision comes during a crucial period for the music industry, coinciding with the Grammy Awards week, where labels and distribution companies gather in Los Angeles.
In the aftermath, videos containing UMG-owned songs on TikTok will be muted, allowing users the choice to select an alternative soundtrack for their content. With over 1 billion users on TikTok, fans will need to find alternatives to songs by popular acts such as Swift, Drake, and Bob Dylan.
TikTok has significantly impacted the music industry in recent years, becoming a powerful force for making songs go viral and serving as a platform for discovering new artists. While the app argues that it aids artists in reaching a vast audience, record labels, including UMG, have voiced concerns over unfair compensation.
Despite ByteDance’s substantial revenue, with over $110 billion in sales last year, TikTok’s contribution accounted for only 1% of UMG’s total revenue. In 2022, labels pushed for more equitable compensation from TikTok, prompting Sony Music Entertainment Inc. to temporarily remove its music from the platform during ByteDance’s efforts to expand its Resso music streaming service.
UMG, unlike Warner Music Group Corp. and Sony Music, has taken a firm stance against TikTok, leveraging its size to advocate for fair compensation from streaming services. The company positions TikTok as a more established service and asserts that it pays a fraction of the rate compared to other major social platforms.
In response to the public dispute, UMG released an open letter outlining stalled discussions with TikTok, citing issues such as fair compensation for artists and songwriters, protection against AI tools, and online safety for TikTok users. TikTok, in turn, issued a statement accusing UMG of prioritizing “their own greed above the interests of their artists and songwriters.”
