The Universal Music Group (UMG), the largest record label in the world, is on the verge of pulling its entire catalogue from TikTok.
Last night (January 30) UMG issued an open letter to TikTok announcing will remove music from artists signed to the publisher and label from the short-form video platform.
Artists whose music would leave the platform include Taylor Swift, Drake, Bad Bunny, The Weeknd, BTS, Ariana Grande, Billie Eilish, Justin Bieber, Rihanna, Adele, Post Malone and Sophie Ellis-Bextor, who has seen a huge boost of her 2001 hit "Murder On The Dancefloor" on TikTok, thanks to its use in the film Saltburn.
The label admitted that its licensing agreement with TikTok expires today (January 31) and that they have failed in coming to an agreement in negotiations to renew the contract. Reuters points out that the two parties first reached an agreement back in February 2021.
UMG claims TikTok is not willing to pay appropriate compensation for its artists and songwriters.
"TikTok proposed paying our artists and songwriters at a rate that is a fraction of the rate that similarly situated major social platforms pay," the label writes. "Ultimately TikTok is trying to build a music-based business, without paying fair value for the music."
UMG also argues that TikTok is not protecting human artists from the harmful effects of AI, adding that it allows "the platform to be flooded with AI-generated recordings—as well as developing tools to enable, promote and encourage AI music creation on the platform itself – and then demanding a contractual right which would allow this content to massively dilute the royalty pool for human artists, in a move that is nothing short of sponsoring artist replacement by AI."
"When we proposed that TikTok takes similar steps as our other platform partners to try to address these issues," the label continued, "it responded first with indifference, and then with intimidation."
Today (January 31) TikTok issued a brief response to UMG's letter in which it accuses the publisher of putting its “own greed above the interests of their artists and songwriters” by driving a “false narrative and rhetoric.”
In closing TikTok pointed out that it "has been able to reach 'artist-first' agreements with every other label and publisher. Clearly, Universal's self-serving actions are not in the best interests of artists, songwriters and fans."
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.
— Universal Music Group (@UMG) January 31, 2024
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