TikTok which Chinese company ByteDance owns, recently logged heads with the biggest music company in the world, Universal Music Group.
Universal Music Group and other music companies make money, which are called royalty payments when their songs are played on streaming platforms like Spotify and Apple Music. They also get royalty payments from social media platforms like Instagram, and TikTok.
Universal Music Group claims that although TikTok has more than one billion users, they don’t account for even 2% of Universal’s royalty payments. The two companies came together for a meeting, which wasn’t successful. Universal Music Group then concluded that it would stop licencing its content to TikTok when its contract expires on January 31, 2024.
TikTok responded, saying, “It is sad and disappointing that Universal Music Group has put their own greed above the interests of their artists and songwriters… Despite Universal’s false narrative and rhetoric, the fact is they have chosen to walk away from the powerful support of a platform with well over a billion users that serves as a free promotional and discovery vehicle for their talent”
Universal holds a dominant position in the global recorded music industry. It holds the rights to many artists, from Taylor Swift, Adele, BTS, and Blackpink to Davido, Tiwa Savage, StoneBwoy, and Nasty C.
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