Hitting a Sour Note: Licensing Dispute Puts UMG Catalog at Risk on TikTok

TikTok users may soon lose access to a huge music library as negotiations between Universal Music Group and the video platform have broken down. Sources say the two parties disagreed over appropriate compensation levels for artists in TikTok’s license renewal offer.

UMG, which represents some of the biggest names in music, took issue with rates it considered paltry compared to other social media giants. In a memo to artists, the label slammed TikTok’s unwillingness to pay fair value for the music driving engagement on its site.

TikTok disputed UMG’s characterization of the negotiations. A company spokesperson said its proposals treated musicians fairly and benefited users. However, both sides appear far apart on what constitutes an equitable deal.

Without a new agreement, UMG confirmed it will pull its full catalog when the current terms expire midweek. How the situation is resolved will have ramifications far beyond just one company. TikTok’s success hinges on viral videos showcasing the hottest songs.

But securing the rights to huge libraries comes at a cost. As negotiations falter, questions emerge about whether social platforms can balance composer pay with growth. Only time will tell if these parties can reunite around terms amicable to all, or if a licensing stalemate looms over TikTok’s musical future.

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