TikTok is set to lost access to songs by huge artists including Taylor Swift as the social media platform is in dispute with Universal Music over payments.
Millions of songs are set to be pulled from the platform by Universal Music as talks between the publisher and TikTok over payments have broken down. Universal’s current deal with TikTok ends on January 31, after which, Universal has said it will stop licensing content to the platform, which is owned by Chinese company ByteDance.
Talks have been ended as TikTok only wanted to pay a small amount of the rate that other social media sites do for access to Universal’s huge catalogue of music, according to the publisher.
However, TikTok has hit back at Universal, saying the company was giving a “false narrative.”
When songs are played on streaming and social media platforms, the companies that own the rights receive royalty payments.
In an open letter, Universal stated: “With respect to the issue of artist and songwriter compensation, TikTok proposed paying our artists and songwriters at a rate that is a fraction of the rate that similarly situated major social platforms pay. Today, as an indication of how little TikTok compensates artists and songwriters, despite its massive and growing user base, rapidly rising advertising revenue and increasing reliance on music-based content, TikTok accounts for only about 1% of our total revenue.
“Ultimately TikTok is trying to build a music-based business, without paying fair value for the music.”
However, TikTok has hit back at Universal in its own statement, which read: “It is sad and disappointing that Universal Music Group has put their own greed above the interests of their artists and songwriters.
“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 has been able to reach ‘artist-first’ agreements with every other label and publisher. Clearly, Universal’s self-serving actions are not in the best interests of artists, songwriters and fans.”
With such accusations flying between the companies, it could well be that Universal-owned music – which covers everything from The Beatles to The Weeknd – disappears from TikTok from February 1.
