Universal threatens to pull songs from TikTok in row over payments

(Sharecast News) - Universal Music is gearing up to pull millions of its songs from social media platform TikTok after a breakdown in talks over payments. In an open letter, the music publishing giant accused TikTok of trying to "bully" it into accepting a deal on weaker terms than the current agreement which expires on January 31. A withdrawal of its songs would deny access to access to music by artists including Taylor Swift and Drake.

Music companies earn royalty payments when songs are played on streaming and social media platforms.

"TikTok proposed paying our artists and songwriters at a rate that is a fraction of the rate that similarly situated major social platforms pay. Today, as an indication of how little TikTok compensates artists and songwriters, despite its massive and growing user base, rapidly rising advertising revenue and increasing reliance on music-based content, TikTok accounts for only about 1% of our total revenue," Universal said.

Universal said the social media platform attempted to "bully" it into a deal worth less than the previous contract by "selectively removing the music of certain of our developing artists, while keeping on the platform our audience-driving global stars".

"TikTok's tactics are obvious: use its platform power to hurt vulnerable artists and try to intimidate us into conceding to a bad deal that undervalues music and shortchanges artists and songwriters as well as their fans."

In response, TikTok - owned by Chinese company ByteDance - accused Universal of presenting a "false narrative and rhetoric" and putting "greed above the interests of their artists and songwriters".

Reporting by Frank Prenesti for Sharecast.com