Universal Music Group (UMG), one of the largest music labels in the world, has made the decision to no longer allow its music on the popular social media platform TikTok. This comes as a result of an expired licensing deal between UMG and TikTok, owned by ByteDance.
In a letter addressed to artists and songwriters, UMG stated that it had been in discussions with TikTok about three key issues: fair compensation for their artists and songwriters, protection from the potentially negative effects of artificial intelligence (AI) on human artists, and online safety for TikTok users.
One of the main concerns raised by UMG was the compensation offered by TikTok. The music label claimed that TikTok proposed a rate significantly lower than what other major social platforms pay. UMG pointed out that TikTok contributes only about 1% of its total revenue. UMG stated, 'Ultimately TikTok is trying to build a music-based business, without paying fair value for the music.'
TikTok, however, countered this claim by stating that they have reached 'artist-first' agreements with every other label and publisher. They accused UMG of acting in their own self-interest rather than considering the best interests of artists, songwriters, and fans.
UMG also expressed concerns about the potential threat that AI technology poses to artists. They claimed that TikTok is developing tools that could enable AI-generated music, which they believe would dilute the royalty pool for human artists. UMG accused TikTok of 'sponsoring artist replacement by AI.'
Safety issues were another point of contention for UMG. They criticized TikTok for their handling of hate speech, bigotry, bullying, and harassment on the platform. UMG described the process of having troubling content removed from TikTok as 'monumentally cumbersome and inefficient.' They suggested that TikTok adopt similar measures used by other social media partners to address these issues.
UMG alleged that during the negotiations, TikTok attempted to intimidate them into accepting a deal that offered less than the previous one and did not reflect the platform's exponential growth. UMG claimed that TikTok selectively removed the music of some developing artists while keeping the content of their global stars.
TikTok responded to UMG's statements by accusing the music label of prioritizing greed over the interests of their artists and songwriters.
As of now, it remains unclear how this decision will impact TikTok users and the artists represented by UMG. Nonetheless, this disagreement highlights the ongoing challenges faced by the music industry in navigating licensing agreements with emerging social media platforms and the need to strike a balance between fair compensation, artist protection, and online safety.
