Universal Music Group announced on Wednesday that it will stop licensing its music to TikTok. The company also accused the popular short video platform of bullying and intimidating tactics during contract negotiations.
Known for representing mega-stars like Taylor Swift and Drake, Universal Music Group alleged that TikTok is trying to establish a music-centric business “without paying fair value for the music.”
TikTok responded by stating that Universal Music Group has prioritized “their own greed above the interests of their artists and songwriters.”
The music licensing agreement between UMG and TikTok, which is owned by the Chinese tech company ByteDance, expired on Wednesday, and no new terms have been agreed upon. As a result, UMG may withdraw its music catalog from TikTok.
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A short list of Universal Music Group (UMG) artists whose music is set to disappear from the platform includes renowned names such as Taylor Swift, Bad Bunny, The Weeknd, Drake, Billie Eilish, Justin Bieber, Adele, Coldplay, J Balvin, Post Malone, and Sophie Ellis-Bextor.
Notably, Sophie Ellis-Bextor's 2001 track 'Murder On The Dancefloor' gained significant popularity on TikTok, especially after the release of Saltburn.
In an open letter released on Wednesday, Universal Music Group (UMG) highlighted that during contract negotiations with TikTok, they have been advocating for three key concerns. These include “appropriate compensation for our artists and songwriters, protecting human artists from the harmful effects of AI, and online safety for TikTok’s users.”
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Universal Music Group pointed out that TikTok's proposed payment for its artists and songwriters is “at a rate that is a fraction of the rate that similarly situated major social platforms pay.”
UMG emphasized that despite TikTok's “massive and growing user base, rapidly rising advertising revenue and increasing reliance on music-based content,” only 1% of their overall revenue is derived from TikTok.
Universal Music Group (UMG) further claimed that TikTok is permitting its platform to be “flooded with AI-generated recordings.” Additionally, TikTok is actively working on tools to “enable, promote and encourage AI music creation.”
UMG asserted that TikTok is “demanding a contractual right which would allow this content to massively dilute the royalty pool for human artists, in a move that is nothing short of sponsoring artist replacement by AI.”
The music industry has been contending with the emergence of artificial intelligence, which has the capability to create music and even replicate the voices of prominent artists.
Universal Music Group (UMG) also asserted that TikTok has shown limited effort in addressing the extensive amount of content on its platform that infringes on artists' music rights.
“When we proposed that TikTok takes similar steps as our other platform partners to try to address these issues, it responded first with indifference, and then with intimidation,” UMG said.
“As our negotiations continued, TikTok attempted to bully us into accepting a deal worth less than the previous deal, far less than fair market value and not reflective of their exponential growth. How did it try to intimidate us? By selectively removing the music of certain of our developing artists, while keeping on the platform our audience-driving global stars.”
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TikTok accuses UMG of ‘Greed’ over Artists
TikTok issued a response to Universal Music Group's allegations on Wednesday.
In a statement, TikTok expressed disappointment, stating, “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.”
TikTok contested Universal's claims and emphasized that they are walking away from a platform with over a billion users, which serves as a valuable free promotional and discovery tool for their artists.
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TikTok also noted that it has successfully reached “artist-first agreements with every other label and publisher,” and highlighted their music licensing deal with Warner Music Group from the previous year.
