UMG Declines Fair Use Agreement Renewal with TikTok

Universal Music Group (UMG) will no longer licence content to TikTok and TikTok Music services, as the music label announced on Tuesday Jan 30 that its agreement with the social media platform, which expired on January 31, had not been renewed. It has been pressing TikTok for appropriate artist and songwriter compensation in contract renewal discussions, among other things, according to a letter to its artist and songwriter community.

If UMG fails to reach an agreement with TikTok, all of its songs will be removed from the platform when the contract expires on Jan 31, according to a UMG spokesperson. UMG accused TikTok of "trying to build a music-based business, without paying fair value for the music" in its letter.

UMG said TikTok proposed paying artists and songwriters at a rate that is a "fraction of the rate" that similarly situated major social platforms pay. TikTok accounts for only about 1 per cent of UMG's total revenue, the music label said.

TikTok did not immediately respond to a Reuters request for comment. The company had reached a deal with social media platform TikTok in February 2021, which allowed users on the app to be able to incorporate clips from UMG's music catalog on their videos.