Universal Music Group Revokes TikTok License Because The Agreement Is Not Renewable

JAKARTA - Music record company Universal Music Group (UMG), announced that it will no longer license content to TikTok and TikTok Music services. The deal between UMG and the social media platform, which ended on January 31, was not renewed.

UMG has pressured TikTok to provide appropriate compensation to artists and songwriters in talks on their contract extensions, among other things, as stated in a letter addressed to their artist community and songwriters.

If the UMG does not reach an agreement with TikTok, all of their songs will be removed from the service after the agreement expires on Wednesday, January 31, as expressed by an UMG spokesperson. In his letter, UMG accused TikTok of "trying to build a music-based business without paying a fair value to music."

The UMG states that TikTok proposes payments to artists and songwriters at a "small part of the rate" paid by large-sex social platforms.

TikTok only accounts for about 1% of UMG's total revenue, the record company disclosed. TikTok has not yet responded to this report.

In February 2021, UMG has reached an agreement with TikTok that allows users of the app to combine clips from the UMG music catalog in their videos.