It's Not Just A Matter Of Compensation, This Is Another Reason Universal Music Group Attracts Music From TikTok

JAKARTA - Universal Music Group, a label that oversees artists such as Taylor Swift, Billie Eilish, and Ariana Grande, said it would withdraw its music from TikTok after its contract expires on January 31.

UMG claims to have had further discussions regarding the contract with TikTok, stressing three important issues, including compensation for artists and songwriters, protecting artists from AI's adverse effects, and online security for TikTok users.

"In connection with the issue of artist and songwriter compensation, TikTok proposes to pay our artist and songwriter at a rate much less than the rates paid by large social platforms at similar locations," the company wrote in its open letter.

As for the use of AI, UMG says that TikTok is letting its platform be flooded with AI-generated recordings, as well as developing tools to enable, promote, and encourage AI music creation on the platform.

In addition, TikTok also did not take the right steps to immediately remove content that violates the label's copyright, UMG said.

"In the end TikTok tried to build a music-based business, without paying a fair value for the music," wrote UMG further.

The current UMG contract with TikTok begins in 2021 and includes music recordings from artists on UMG labels and songwriters linked to Universal Music Publishing Group.

However, for some reason, UMG agreed not to renew its agreement with TikTok, and plans to stop licensing content for TikTok and its music-focused service, TikTok Music.