UMG plans to withdraw songs from TikTok, citing ‘bullying’ over music rights fees
Universal Music Group’s deal with TikTok will expire soon due to disagreements over artist compensation and AI. This means popular music like Taylor Swift, Harry Styles, and the viral hit “Murder on the Dancefloor” will be removed from TikTok’s library.
In a scathing open letter titled “Why we need to pause TikTok,” published on Tuesday, UMG, the world’s largest music company, accused TikTok of trying to “bully” and “intimidate” them into accepting a deal worth less than before, far below fair market value, and not reflective of their significant growth.
TikTok, owned by Chinese company ByteDance, is a social media platform where users create short-form videos, with many featuring sound effects and licensed music.
UMG’s influence on popular music is immense, holding rights to artists like the Beatles, Bob Dylan, Elton John, Drake, Sting, the Weeknd, Kendrick Lamar, SZA, Ariana Grande, Justin Bieber, Adele, U2, Coldplay, Post Malone, and others. It’s the only music company to have nine of the top 10 albums in the Billboard 200 chart simultaneously, achieving this feat four times.
Sophie Ellis-Bextor’s “Murder on the Dancefloor,” owned by UMG, has gained traction on TikTok. Wealthy users have been posting videos of themselves dancing to the song in luxurious settings, reminiscent of a scene from the 2023 film Saltburn.
A spokesperson for UMG confirmed to Reuters that if an agreement with TikTok is not reached, all UMG songs will be removed from the platform once the current deal expires on Wednesday.
In their open letter, UMG claimed that TikTok contributes to “only about 1% of our total revenue,” which they argued demonstrates “how inadequately TikTok compensates artists and songwriters,” despite its large and expanding user base, rapidly increasing advertising revenue, and growing reliance on music content.
UMG further alleged that during negotiations for a new agreement, TikTok had suggested paying their artists and songwriters a rate that is significantly lower than what similar major social platforms pay.
When discussions reached an impasse, UMG claims that TikTok attempted to “intimidate” them by selectively removing music from some of their emerging artists while retaining songs from bigger stars on the platform.
UMG wrote that TikTok’s tactics are evident: leveraging its platform influence to harm vulnerable artists and coerce them into accepting an unfavorable deal that devalues music and deprives artists, songwriters, and their fans.
In a strong rebuttal, TikTok accused UMG of prioritizing their own financial gain over the welfare of their artists and songwriters.
The company stated, “Despite Universal’s misleading portrayal and language, the reality is that they have opted to withdraw from the substantial backing of a platform with well over a billion users, which serves as a free promotional and discovery tool for their artists.”
The conflict arises as TikTok increasingly ventures into music creation and artificial intelligence. Last year, it introduced TikTok Music in specific regions as a competitor to Spotify and Apple Music. Additionally, it is testing an “AI Song” feature enabling users to compose songs with prompts.
UMG accused TikTok of allowing an influx of AI-generated recordings on the platform. By offering tools for AI music creation, TikTok is allegedly endorsing the replacement of artists by AI. UMG claimed that its only recourse to address infringing content on TikTok was a “tremendously burdensome and inefficient process,” likening it to a digital game of Whac-a-Mole.
TikTok has comparable agreements with music labels like Sony and Warner Music. While TikTok emphasized this fact in their statement on Tuesday, it is unclear if these companies share any of UMG’s concerns.