Global music giant Universal Music Group (UMG) has threatened to remove its music from TikTok due to an unresolved licensing dispute. The report was released through an open letter to artists and songwriters titled “Why you should call time on TikTok,” which outlined the challenges they face in communicating
The BBC reports that record companies earn royalties when their music is played on streaming and social media platforms. The current dispute stems from the termination of the licensing agreement between UMG and TikTok, with no new terms yet to be reached without mutual consent
In an official statement, UMG said, “Unless the companies accept the terms of the new agreement, Universal Music Group, which includes Universal Music Publishing Group, will cease licensing TikTok and TikTok Music Services upon termination.” the present contract.
Our core mission is simple: to help our artists & songwriters attain their greatest creative and commercial potential, which is why we must call time out on TikTok.
Learn More: https://t.co/yJDQ7FdgNc pic.twitter.com/Lhluz1ez5H
— Universal Music Group (@UMG) January 31, 2024
The open letter made it clear that UMG is pushing TikTok on three important issues: fair compensation for artists and songwriters, protecting human artists from potential risks of artificial intelligence, and ensuring online safety for TikTok users.
UMG also accused TikTok of trying to force it into accepting a deal that was far less favorable than the previous deal. “TikTok has offered to pay our artists and songwriters at a fraction of what larger social events in similar circumstances pay,” the letter said, confirming that TikTok will now use it to monetize UMG only 1% of their income contributes
— TikTokComms (@TikTokComms) January 31, 2024
TikTok responded by expressing disappointment and branding UMG’s actions as putting greed ahead of its artists’ well-being. Despite Universal’s accusations, TikTok has defended itself, building on its role as a platform with more than a billion users, offering free talent promotion and discovery opportunities
The negotiations revolved around issues such as fair compensation for artists, online consumer protection, and protection against AI-driven recordings. UMG alleged that TikTok tried to put pressure on them to match the platform’s massive growth.
TikTok, the hugely popular social media application owned by Chinese company ByteDance, boasts 1 billion users worldwide. Despite TikTok’s massive usage, UMG insisted it only accounted for about 1% of its total revenue.
The controversy has wider implications because UMG owns the exclusive rights to the most important artists around the world, including Taylor Swift, Ariana Grande, Justin Bieber, Coldplay, The Weeknd, Drake, Bob Dylan, Adele, and Billie Eilish around
TikTok expressed disappointment saying, “TikTok has managed to negotiate an ‘artist first’ deal with every other label and publisher. Universal’s selfish actions are not ideal for artists, songwriters, and fans. The situation remains the same.” intense when the connection to the great music.” the social media platform continues”.
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