Universal Music Group (UMG) announced the discontinuation of content licensing to TikTok and TikTok Music services, citing the failure to renew their agreement with the social media platform.
UMG emphasized ongoing negotiations focused on fair compensation for artists and songwriters.
If an agreement isn’t reached, UMG songs will be removed from TikTok after the deal expires on Wednesday.
UMG accused TikTok of undervaluing music, alleging a proposed compensation rate significantly lower than other major social platforms.
TikTok contested, stating UMG’s actions were not in the best interest of artists and fans, emphasizing TikTok’s small share of UMG’s revenue.
The initial deal in February 2021 allowed TikTok users to use clips from UMG’s music catalog.
