Universal Music Group, the world's largest music company, threatens to remove its songs from TikTok over a licensing dispute.
The two companies have yet to reach a new music rights deal to replace the one that expires Wednesday.
Santa Monica-based UMG and Chinese-owned TikTok reached a deal in 2021 that allowed the popular video-based social media platform to access UMG's recorded music from artists on its labels, as well as from Universal Music Publishing Group songwriters.
Artists on UMG labels include Billie Eilish, Olivia Rodrigo, Taylor Swift and Ice Spice.
If UMG removed its music, it would be a blow to TikTok users, who generate videos that often feature popular songs. Labels and artists benefit from licensing music to TikTok, helping them market new and old songs. Trending videos can often increase the popularity of an artist whose work is used as an accompaniment.
“When it comes to music licensing for social media, negotiations tend to play out like a battle over who needs the other more,” said Tatiana Cirisano, music industry analyst at MIDiA Research. “One side of the argument is that social platforms are an indispensable promotional tool for music; the other is that the platforms could not exist without music. Taking the nuclear route of removing all UMG music from TikTok reads like an attempt to prove the latter.”
UMG said in an open letter that it had several concerns about the TikTok deal, including the royalty rate the social video company proposed to pay artists, how TikTok handles its content moderation and that there were not enough financial protections for artists. regarding AI-generated music. .
“Ultimately, TikTok is trying to build a business based on music, without paying fair value for the music,” UMG said in its letter.
UMG also accused TikTok of bullying it into accepting a deal that was worth less than its previous deal and removing music from certain UMG artists in development.
“TikTok’s tactics are obvious: using the power of its platform to harm vulnerable artists and trying to bully us into accepting a bad deal that undervalues music and defrauds artists and songwriters, as well as their fans,” he said. UMG in his letter.
TikTok called UMG's actions “interesting” and “not in the best interest of artists, songwriters and fans.”
“It's sad and disappointing that Universal Music Group has put its own greed before the interests of its artists and songwriters,” TikTok said in a statement. “Despite Universal’s false narrative and rhetoric, the fact is that they have decided to walk away from the powerful support of a platform with over a billion users that serves as a free vehicle of promotion and discovery for their talent. “
TikTok is a major source of music discovery, especially for teens, Cirisano said. MIDiA surveys show TikTok is the second most popular source of music discovery for 16- to 19-year-olds behind YouTube, he added.
“This new generation is not content to simply consume music: they want to play an active role in it, which is what makes the creation of TikTok so attractive,” Cirisano said. “So, it is certainly a risk for any record label to pull your music, although again, it is a risk that the world's largest record company is willing to take. Plus, in all likelihood, it won't be forever.”
Over the years, UMG has struck deals with other social media platforms, including Facebook and YouTube. TikTok also has agreements with other labels and publishers.
