Following a breakdown in payment negotiations, Universal Music plans to remove its millions of songs from TikTok. Due to the change, Drake, Taylor Swift, and The Weeknd's songs would no longer be available on the social media platform.
TikTok was accused of "bullying" by Universal, which also stated that it wanted to pay a "fraction" of what other social media platforms charge for access to its extensive library. According to TikTok, Universal was putting forth a "false narrative and rhetoric."
When songs are streamed or shared on social media, music companies receive royalties. Despite having over a billion users, TikTok—owned by the Chinese company ByteDance—only contributes 1% of Universal's overall revenue, according to the label.
Universal, which owns around one-third of the world's music, stated in a "open letter to the artist and songwriter community" that "ultimately, TikTok is trying to build a music-based business without paying fair value for the music."
Along with advocating for "appropriate compensation for our artists and songwriters," Universal stated that it was also focused on "online safety for TikTok's users and protecting human artists from the harmful effects of AI." When the contract with TikTok expires on January 31, the company announced that it would no longer license its content to the platform.
"Despite Universal's false narrative and rhetoric, the fact is they have chosen to walk away from the powerful support of a platform with well over a billion users that serves as a free promotional and discovery vehicle for their talent," TikTok responded, calling it sad and disappointing that the company had prioritized its own greed over the interests of its artists and songwriters.
For the first time, Universal has made the significant move to remove one of its songs from a platform owned by a tech company. Warner Music, the third-largest recorded music company in the world, and TikTok signed a new licensing agreement in July of last year.