TikTok faces the imminent removal of music by popular artists such as Taylor Swift, Drake, and Olivia Rodrigo by the end of Wednesday unless a deal is reached with Universal Music Group (UMG). The platform, with an estimated 1.5 billion monthly users, plays a crucial role in the modern music ecosystem by allowing users to incorporate songs from major record label catalogs into their videos. However, UMG declared on Wednesday that it would pull its tracks due to a perceived lack of compensation for artists and songwriters.
In a statement, UMG criticized TikTok for proposing payment rates significantly lower than those offered by comparable social platforms. TikTok, owned by Chinese company Bytedance, responded with its own strong-worded statement, accusing UMG of prioritizing “their own greed above the interests of artists and songwriters.”
Despite UMG artists dominating the platform’s popularity, representing 8 out of 10 of the most popular acts last year, the music company argued that TikTok contributes only 1% to its advertising revenue. Approximately 60% of TikTok videos feature music. UMG, one of the “Big Three” global music companies, holds licenses for iconic artists such as The Beatles, Elton John, Bob Dylan, Ariana Grande, and more.
In an open letter titled “Why We Must Call Time Out on TikTok,” UMG expressed concerns about TikTok’s attempt to build a music-based business without offering fair compensation. The letter also raised issues related to the impact of artificial intelligence tools on intellectual property in TikTok videos, copyright infringement, and the prevalence of hate speech on the platform.
UMG alleged that TikTok tried to coerce them into accepting an unfavorable deal during negotiations, and accused the platform of selectively removing music from certain developing artists while retaining content from globally recognized stars. While TikTok did not directly respond to these allegations, it dismissed UMG’s claims as a “false narrative and rhetoric” and highlighted its successful agreements with other major music labels, including a deal with Warner Music Group last year.
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TikTok emphasized that UMG’s decision meant walking away from a platform with over a billion users, serving as a vital promotional and discovery tool for their talent. The dispute reflects the ongoing challenges and negotiations between social media platforms and music rights holders in the evolving digital landscape.
