As of February 1st, Universal Music Group’s Songs have been withdrawn from Tiktok as a result of both parties failing to reach an agreement that would best fit their conditions and needs. The termination of the contract, signed back in 2021, is due to Universal’s perception that TikTok is not offering adequate compensation for their artists.“ In the statement UMG released on January 31st, they voiced their concerns about appropriate compensation for their artists and songwriters and protection from the harmful effects of AI for their artists. They emphasized that TikTok tried to pressure them into accepting a deal worth less than their previous one, which they consider below Fair Market Value and not reflective of their significant growth. 

In response to UMG’s statement, Tiktok expressed their disappointment in UMG’s decisions as they put their own greed above the interests of their artists and songwriters and chose to walk away from free promotional and discovery vehicles for their artists’ and songwriters’ talent. They also stated they had been able to reach ‘artist-first’ agreements with other labels and publishers yet, “Universal’s self-serving actions are not in the best interests of artists, songwriters and fans.”

This could potentially have a substantial impact on TikTok, given that music plays a vital role in their app. Content creators, artists, and viewers alike share their passion through music. With the termination of the contract, previous TikToks featuring songs from UMG have been silenced, with a note at the bottom stating, “This sound isn’t available.” This scenario has left numerous creators feeling frustrated, as some of their videos have been muted, resulting in a noticeable decrease in views.

This is not only a big change for TikTok but for UMG as well. Universal is home to some of the world’s most popular music stars including Taylor Swift, Ariana Grande, Drake, Adele, Post Malone, Lorde and more. These artists had no say in the termination between their company and Tiktok. 

The dispute between Universal Music Group and TikTok is more than just a contractual disagreement; it represents a clash of priorities and values within the music industry. While both parties strive to protect their interests and those of their respective artists, this decision affects both parties. This also serves as a reminder of the significance of relationships between platforms, labels, artists, and fans, and the balance required to sustain a thriving ecosystem in today’s digital world.