The partnership between Universal Music Group and TikTok is ending within 24 hours due to disputes over artist payment and artificial intelligence. This means that popular songs from artists like Taylor Swift, Harry Styles, and the viral hit “Murder on the Dancefloor” will no longer be available on TikTok.
UMG, the largest music company globally, released a strongly worded letter on Tuesday titled “Time Out on TikTok”, where they accused the app of pressuring them to accept a deal that undervalues their music and does not fairly compensate them for their exponential growth.
TikTok, a social media platform owned by the Chinese company ByteDance, enables users to create brief videos accompanied by sound effects and licensed music.
The influence of UMG in the music industry is unparalleled, as they own the rights to some of the biggest names in music such as the Beatles, Bob Dylan, Elton John, Drake, Sting, the Weeknd, Kendrick Lamar, SZA, Ariana Grande, Justin Bieber, Adele, U2, Coldplay, and Post Malone. They have also made history by having nine out of the top 10 albums on the Billboard 200 chart at the same time, a feat they have accomplished four times.
The song “Murder on the Dancefloor” by Sophie Ellis-Bextor, which is owned by UMG, has become popular on TikTok. Wealthy users have been sharing videos of themselves dancing in lavish homes, mimicking a scene from the movie Saltburn released in 2023.
A spokesperson from UMG has confirmed to Reuters that if an agreement is not reached with TikTok, all songs from UMG will be taken off the service when the deal ends on Wednesday.
According to the open letter, UMG claimed that TikTok makes up a mere 1% of their overall revenue. They used this as proof of the low compensation that artists and songwriters receive from TikTok, despite its large and expanding user base, significant advertising income, and reliance on music-based content.
During talks for a new agreement, the music company accused TikTok of suggesting a payment rate for their artists and songwriters that is significantly lower than what other major social platforms offer.
UMG claims that during the negotiation standstill, TikTok attempted to intimidate them by selectively removing music from certain emerging artists while still featuring popular stars on the platform.
UMG stated that TikTok’s strategy is clear: to utilize its platform influence in order to harm susceptible musicians and coerce us into agreeing to an unfavorable agreement that diminishes the value of music and deprives artists, songwriters, and their supporters.
TikTok fired back, claiming that UMG prioritized their own financial gain over the well-being of their artists and songwriters.
The company stated that, despite Universal’s untrue story and persuasive language, the reality is that they have decided to abandon the strong backing of a platform with more than one billion users. This platform serves as a means of free promotion and exposure for their talented individuals.
TikTok’s recent developments in music creation and artificial intelligence have caused a stir. Last year, the platform introduced TikTok Music in certain regions as a competitor to Spotify and Apple Music. Additionally, it is testing an “AI Song” feature that enables users to compose songs using prompts.
UMG alleged that TikTok was permitting an excessive amount of AI-generated recordings on their platform. According to UMG, TikTok is promoting the replacement of artists with AI by providing users with tools to create AI music. UMG also stated that their only option to remove infringing content on TikTok was through a tedious and ineffective process similar to the game Whac-a-Mole.
TikTok holds similar agreements with music companies including Sony and Warner Music – which the social media company made a point of highlighting in their statement on Tuesday – but whether they share any of UMG’s concerns remains to be seen.
Source: theguardian.com
