Universal Music Group (UMG) has announced plans to remove its music catalog from TikTok due to failed negotiations with ByteDance, the platform’s parent company, over royalties. The decision will go into effect tomorrow at midnight, with UMG not seeking to renew its current arrangement set to expire on January 31.
UMG accused TikTok of trying to build a music-based business without fairly compensating artists and songwriters. The label highlighted that TikTok proposed paying at a fraction of the rate compared to other major social platforms. TikTok reportedly generated close to $20 billion in ad revenue last year but accounts for only about 1% of UMG’s total revenue.
In response, TikTok stated that Universal’s actions are driven by greed and are not in the best interests of artists, songwriters, and fans. Despite Universal’s decision, TikTok has been able to reach agreements with every other label and publisher.
According to UMG, the dispute stemmed from disagreements on payments for AI-generated recordings using UMG properties and TikTok’s handling of copyright violations. The current contract between the two parties dates back to 2021 and covers recorded music and songwriters associated with Universal Music Publishing Group.
As TikTok continues to focus on music creation and curation, it is positioning TikTok Music as a competitor to streaming platforms like Spotify and Apple Music. The platform is also piloting an “AI Song” feature that uses AI to create songs based on user prompts.
While TikTok has engaged with certain labels on favorable terms, it has faced criticism for its approach. It previously removed major record company music from its service for a subset of users in Australia and has pursued exclusive distribution deals with musicians for its SoundOn service.
