Big things are happening in the music and social media world. Universal Music Group (UMG) is threatening to remove its entire music catalog from TikTok by the end of today (January 31), unless a new agreement is reached. This decision could lead to TikTok users saying goodbye to songs from artists like Fall Out Boy, Coldplay, Billie Eilish, The 1975, and many others from the popular platform.
UMG is one of the “Big Three” global music companies, next to Sony Music and Warner Music Group. Other artists on its roster include The Beatles, Elton John, Bob Dylan, U2, Ariana Grande, SZA, Adele, and more. Here is the full list of Universal artists.
TikTok, with its estimated 1.5 billion monthly users, heavily relies on music from these major record labels to enhance the videos that users create, with about 60% of them featuring music. UMG explained that the main reason for this move is the unfair compensation they have been seeing for their artists and songwriters. According to UMG, TikTok’s proposed payment rate is much, much lower than what is offered by similar major social platforms that they work with. In an open letter titled “Why We Must Call Time Out on TikTok,” UMG explained, “Ultimately TikTok is trying to build a music-based business, without paying fair value for the music.”
UMG revealed that even though its artists are some of the most popular on TikTok, their contract with the platform only makes up about 1% of their advertising revenue. In a tweet, TikTok shot back at UMG, saying that they are prioritizing making money over the interests of artists and songwriters.
UMG also raised concerns about the use and encouragement of artificial intelligence (AI) tools on TikTok, potential copyright infringement, and how the platform has handled issues like hate speech, bigotry, bullying, and harassment.
The music group also made it known that during their negotiations, TikTok used intimidation tactics, such as removing music made by new, emerging artists, while keeping tracks from the globally popular stars. “TikTok’s tactics are obvious,” UMG said in their letter. “Use its platform power to hurt vulnerable artists and try to intimidate us into conceding to a bad deal that undervalues music and shortchanges artists and songwriters as well as their fans. We will never do that.”
TikTok pointed out that they haven’t had issues like this with other major music labels, such as their licensing agreement with Warner Music Group. In the tweet, they criticized UMG for walking away from a platform that serves as a “free promotional and discovery vehicle for their talent”, suggesting the music group is neglecting the benefits that TikTok provides for them with their billions of users.
— TikTokComms (@TikTokComms) January 31, 2024
The standoff between these two companies marks a defining moment in the intersection of music and social media, with potentially huge implications for artists, songwriters, and the millions of users who engage with music on TikTok.
UMG finished their letter off strongly, emphasizing that they understand the impact this will cause, but are unwilling to go against what they believe in. They said, “…we have an overriding responsibility to our artists to fight for a new agreement under which they are appropriately compensated for their work, on a platform that respects human creativity, in an environment that is safe for all, and effectively moderated.”
“We honor our responsibilities with the utmost seriousness. Intimidation and threats will never cause us to shirk those responsibilities.”
