UMG Presses TikTok for Fair Artist Compensation in Contract Impasse


  • UMG is currently negotiating contract renewal with TikTok, pushing for suitable artist and songwriter compensations amongst other points.
  • A failure to reach an agreement could lead to the removal of all UMG songs from TikTok once the deal expires on Wednesday, according to a UMG spokesperson.
  • UMG claims that TikTok aims to build a music-based business without offering a fair price for the music.
  • TikTok has reportedly proposed paying artists and songwriters a “fraction of the rate” paid by major social platforms.
  • TikTok contributes to approximately 1% of UMG’s total revenue.
  • Last year, UMG reached an agreement with TikTok which allowed users to incorporate clips from UMG’s music catalog in their videos.

UMG Contract Negotiations with TikTok

UMG is discussing a contract renewal with TikTok, emphasizing suitable artist and songwriter compensations among other things, as mentioned in a letter sent to its artist and songwriter community.

Should UMG not come to terms with TikTok, all its music could be pulled from the platform once the contract expires this Wednesday, stated a UMG spokesperson.


UMG’s Claims Against TikTok

In their letter, UMG accused TikTok of an attempt to create a music-based business without compensating fairly for the music.

TikTok reportedly suggested a payment rate for artists and songwriters that is significantly lower than the rates given by other comparable, major social platforms, according to UMG.

Tiktok’s Contribution to UMG

As claimed by the music label, TikTok accounts for around 1% of UMG’s total revenue.

In February 2021, the company finalized a deal with TikTok, permitting app users to incorporate clips from UMG’s music catalog into their videos.

The result of these negotiations may impact the value of shares for both UMG and TikTok’s parent company, ByteDance. Investors in these companies should keep an eye on these discussions as they may influence future trading decisions.

PIP Penguin