In a letter to its artist and songwriter community, UMG said the company has pressed TikTok to provide appropriate compensation to artists, songwriters and others during contract renewal discussions.
UMG's deal with TikTok has yet to be renewed. Photo: Reuters
In its letter, UMG accused TikTok of “attempting to build a music- based business without paying fair value for the music.”
If UMG fails to reach a deal with TikTok, all of the company's songs will be removed from the service after the deal expires on Wednesday (January 31), a UMG spokesperson said.
UMG said TikTok offers to pay artists and songwriters “a fraction” of what similarly positioned major social networks pay. The music label said TikTok accounts for only about 1% of UMG’s total revenue.
On TikTok's side, the social network called UMG's story "false" and said UMG's actions were not in the best interests of artists, musicians and fans.
Earlier in February 2021, UMG reached an agreement with social media platform TikTok, allowing users of the app to incorporate music from UMG's music catalog into videos .
Ngoc Anh (according to Reuters)
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