Arabella Asis Tech 01.31.2024 02:Jan AM EST

Universal Music Group to Pull Out Songs From TikTok Once Deal Expires

Universal Music Group (UMG) announced that it will remove songs from TikTok after failing to reach mutual deal terms over issues of artist compensation and AI.

In addition, UMG claimed that TikTok attempted to "bully" the music company into a deal that was worth less than the previous agreement.

UMG, TikTok Fail to Reach Agreement

In a statement, UMG shared that they have failed to onboard on a new set of agreements and will not be renewing once it expires on January 31. "Universal Music Group, including Universal Music Publishing Group, will cease licensing content to TikTok and TikTok Music services," the company explained.

Meanwhile, TikTok expressed its disappointment in failing to renew a deal with UMG. The social media giant called out the music company for putting "their own greed above the interests of their artists and songwriters."

The non-renewal of the license will include the songs from Taylor Swift, Bad Bunny, The Weeknd, Ariana Grande, Justine Bieber, Coldplay, Post Malone, Kendrick Lamar, Billie Eilish, Rosalia, Harry Styles, and more.

TikTok Secures Artist-First Agreements From Other Labels

According to TikTok, the company has been able to close 'artist-first' agreements with every other label and publisher, citing that the problem only lies within the terms from UMG.

"Despite Universal's false narrative and rhetoric, the fact is they have 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," TikTok wrote.

In 2021, UMG and TikTok entered an agreement that aimed to provide fair compensation for artists and songwriters along with a promotional platform for their content. However, UMG argued that the platform fails to compensate the artists properly.

According to UMG, TikTok accounts only hold about 1% of their total revenue. As of writing, the music company detailed that TikTok has been selectively removing the music of certain developing artists during the negotiation period.