Universal Music has stopped providing music content services to TikTok due to a breakdown in licensing rights negotiations with the mobile video social media service (SNS) platform.
As a result, it is expected that TikTok will not be able to use music from global pop stars such as Taylor Swift, The Weeknd, Drake and Justin Bieber.
Citing related sources, the Financial Times said on January 31 that Universal Music, a giant that controls one-third of the world’s music, has been in tense negotiations to secure payment for music content on TikTok over the past year .
“However, the content license for TikTok will be suspended when the contract expires due to failed negotiations”
Major record labels, including Universal Music, make billions of dollars a year by renegotiating music content royalties every two years with streaming services and social media companies, including Apple and Meta.
However, Universal Music criticized TikTok for imposing a below-market value beyond its refusal to respond to its negotiations.
“As negotiations continued, TikTok bullied Universal Music into accepting the deal at a lower value than the previous deal and at a value well below fair market value,” the source said.
Previously, TikTok signed a global licensing deal with Universal Music on February 9, 2021.
Until the end of the contract, TikTok users will be able to produce video content and songs with music from Universal Music artists and composers from Universal Music Publishing Group.
Since then, TikTok even released TikTok Music on July 7 last year, which features content from record labels such as Universal Music and a full version of TikTok’s viral music.
This is the first time that Universal Music has removed millions of music content from many global pop stars from the giant platform called TikTok.
TikTok grew in popularity as millions of users shared short clips such as lip-syncing and dancing to music.
A source at Universal Music said: “TikTok’s tactics are clear. It is using the power of the platform to harm vulnerable artists, minimize music and threaten us into tolerating bad deals that deceive artists, songwriters and fans.”
Meanwhile, TikTok’s parent company ByteDance had revenue of $29 billion in the three months from April to June last year, up 40% year-on-year, according to the Financial Times.
Journalist: Shawn
Translator: Shawn
Source: Financial Times
