Universal Music Group, which represents megastars such as Taylor Swift, Bad Bunny and Drake, warns it will pull its songs from TikTok after failing to agree to new licensing terms.
In a brief statement late Tuesday, UMG said it will “cease licensing content to TikTok and TikTok Music services” after the current contract expires on Wednesday.
In an open letter to artists and songwriters, UMG said TikTok is “trying to build a business based on music, without paying fair value for music.”
TikTok did not immediately respond to a request for comment.
The hugely popular video-sharing platform, owned by China’s Bytedance, is a major influencer in the music world and UMG said its analysis found that “the majority of content on TikTok” contains music, more than other social networks.
UMG, one of the world’s largest music companies, said in the letter that it had been unable to reach an agreement with TikTok on three key issues: compensation for artists, protection of human artists from the “harmful effects” of intelligence artificial and online safety of TikTok users.
“TikTok has proposed paying our artists and songwriters at a rate that is a fraction of the rate paid by similarly positioned major social platforms,” UMG said, adding that TikTok “is allowing the platform to be flooded with registrations generated by artificial intelligence… in one move this is nothing more than sponsoring the replacement of the artist with artificial intelligence.
UMG said TikTok was indifferent to its concerns and tried to “force” the company to accept a deal worth less than the current one.
Other UMG artists include Ariana Grande, Billie Eilish, Kendrick Lamar, Harry Styles, U2, Pearl Jam, Justin Bieber, Adele, Elton John and Bob Dylan.
UMG shares listed in Amsterdam are UMG,
they have increased by approximately 18% in the last 12 months.