Universal Music is poised to withdraw its extensive music library from TikTok following a breakdown in negotiations over payments.
This move would entail the removal of songs by high-profile artists like Taylor Swift, The Weeknd, and Drake from the social media platform.
Universal accused TikTok of “bullying” and expressed dissatisfaction with the payment terms, claiming TikTok wanted to compensate them at a lower rate compared to other social media platforms.
Despite TikTok’s substantial user base of over one billion, Universal indicated that the platform contributes only 1% of its total revenue.
In an “open letter to the artist and songwriter community,” Universal emphasized its commitment to fair compensation for its artists and songwriters.
The label criticized TikTok’s business model, stating that the platform aims to build a music-centric business without adequately compensating rights holders.
Universal also highlighted concerns about protecting artists from the negative impacts of artificial intelligence (AI) and ensuring online safety for TikTok users.
As a result, Universal announced its decision to cease licensing its content to TikTok effective January 31st, when their current contract expires.
TikTok responded by expressing disappointment in Universal’s decision and accused the label of prioritizing greed over the interests of its artists and songwriters.
Despite Universal’s claims, TikTok underscored its role as a significant promotional and discovery platform for talent.
This marks the first instance of Universal removing its songs from a technology platform.
With its vast music catalog, Universal holds a dominant position in the global recorded music industry, representing artists ranging from legendary acts like the Beatles and Elton John to contemporary stars like Adele and BTS.
The label’s decision will impact TikTok’s content offerings, potentially affecting its appeal to users.
Source-BBC
