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Universal Music Group ( UMG ) , the recording label act artists such as Taylor Swift , Billie Eilish and Ariana Grande , say that it ’ll rive its euphony from TikTok tomorrow at midnight after failing to reach a deal with the platform ’s parent company , ByteDance , over royalties .
UMG wo n’t seek to renew its current system with TikTok , set to expire on January 31 , and plans to cease licensing substance to both TikTok and its music - concentrate service , TikTok Music .
In a press release , UMG accused TikTok — whichreportedlymade closely to $ 20 billion in advertising revenue last year — of trying to establish a “ music - base business without paying bonny economic value for [ artists ’ ] music . ”
“ TikTok proposed paying our artist and songwriters at a charge per unit that is a fraction of the rate that similarly situated major social platform ante up , ” the labelwrote . “ Today , as an indicant of how lilliputian TikTok compensates creative person and ballad maker , despite its massive and grow user base , chop-chop heighten advertizing revenue and increasing reliance on music - based content , TikTok account for only about 1 % of our full revenue . ”
TikTok did n’t immediately respond to a request for scuttlebutt . But later in the eve , a representative e-mail this affirmation :
“ It ’s sad and unsatisfying that Universal Music Group has put their own greed above the interest of their artists and ballad maker . Despite Universal ’s false tale and empty words , the fact is they have prefer to take the air away from the powerful support of a chopine with well over a billion drug user that serve as a free promotional and discovery fomite for their talent . TikTok has been able to turn over ‘ artist - first ’ agreements with every other label and newspaper publisher . distinctly , Universal ’s ego - serving actions are not in the best pursuit of creative person , songwriters and fans . ”
The agency UMG tells it in the press release , TikTok and it did n’t see optic to optic on payments for AI - get recording using UMG properties . In addition , TikTok was n’t taking appropriate steps to fleetly remove content in violation of the recording label ’s copyright , UMG say .
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“ Ultimately TikTok is trying to build up a euphony - based business , without pay fairish value for the music , ” UMG compose .
UMG ’s current contract with TikTok dates back to 2021 and covers recorded euphony from artist at UMG ’s labels and songwriters relate with Universal Music Publishing Group . As a part of the deal , UMG and TikTok agreed to experiment with new features , like allowing exploiter to incorporate clips from UMG ’s full catalog of medicine spanning Bad Bunny , SZA , Drake , Kendrick Lamar , Harry Styles , Justin Bieber , Adele , U2 and Elton John .
The fallout with UMG do as TikTok leans more heavily into music creative activity and curation .
The program is positioningTikTok Music , which establish last twelvemonth in select countries , as a serious Spotify and Apple Music rival . Meanwhile , TikTok ispilotingan “ AI Song ” feature that uses AI to create songs base on prompt that users enter .
Recently , TikTok has sought to ink sole dispersion deals with musicians for ByteDance ’s SoundOn service , which distributes directly to TikTok and music streaming services . It ’s also launched a program calledElevate , designed to identify the next wave of rise artists in the medicine industry .
