Universal Music Group (UMG) has announced that they would be pulling out their singers' music catalog on the short-video sharing platform, TikTok as they failed to forge a new deal together.
UMG's contract with TikTok officially expires at midnight, Jan. 31, 2024, and the platform has issued a scathing response to the record company's initial statement.
Universal Music Group Pulls Out Music Catalog From TikTok
UMG published an open letter titled, "An Open Letter to the Artist And Songwriter Community - Why We Must Call Time Out On TikTok," pressing out three significant points why they are sticking to the nuclear option of pulling out their entire catalog from TikTok.
"In our contract renewal discussions, we have been pressing them on three critical issues," they said in a statement, which includes protection from AI-generated recordings, online safety issues for users, and higher compensation for its artists and songwriters.
"The companies have not agreed to terms for a new agreement and upon expiration of the current agreement, Universal Music Group, including Universal Music Publishing Group, will cease licensing content to TikTok and TikTok Music services," they confirmed.
The glaring problem that the company has pointed out is that in the new contract, TikTok doesn't want to increase their rate of paying the artists for the songs licensed despite "its massive and growing user base, rapidly rising advertising revenue and increasing reliance on music-based content."
"Ultimately TikTok is trying to build a music-based business, without paying fair value for the music," they said.
Starting Feb. 1, 2024, songs from Drake, Taylor Swift, Lady Gaga, BTS, Olivia Rodrigo, SZA, Billie Eilish, The Weeknd, Ariana Grande, and Adele will be removed from the platform.
READ ALSO: TikTok Can Now Let You Save Songs Through Spotify, Apple Music, Amazon
TikTok Hits Back At 'Greedy' UMG Open Letter
Meanwhile, TikTok did not mince its words in its response to UMG's open letter.
"It is sad and disappointing that Universal Music Group has put their own greed above the interests of their artists and songwriters," TikTok said in a statement. "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."
They also pointed out that they were able to strike "artist-first" agreements with other labels and publishers
"Clearly, Universal's self-serving actions are not in the best interests of artists, songwriters and fans," they added.
