What happened with UMG and TikTok? Artists list explored amid collapse of licensing deal negotiations

UMG aka Universal Music Group has threatened to remove its song catalog from TikTok over licensing negotiations. In an open letter released on January 30, the multinational music corporation accused the popular video platform, saying:

“Ultimately TikTok is trying to build a music-based business, without paying fair value for the music.”

The major artists under Universal Music Group include:

• BTS
• Taylor Swift
• Selena Gomez
• Harry Styles
• Nicki Minaj
• Bad Bunny
• Drake
• Lady Gaga
• Ariana Grande
• Billie Eilish
• The Weeknd
• Lana Del Rey
• Post Malone
• Eminem
• Justin Bieber
• Anita
• Beyonce
• Camila Cabello
• Lewis Capaldi
• Mariah Carey
• Enhypen
• Blackpink
• and many more.

The company revealed that the terms of its relationship with TikTok are documented in a contract, which would expire on January 31, 2024. While discussing their contract renewal, UMG claimed to have been trying to come to a negotiation on three critical issues:

“Appropriate compensation for our artists and songwriters, protecting human artists from the harmful effects of AI, and online safety for TikTok’s users.”

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UMG detailed its accusations against TikTok in an open letter

As Universal Music Group began its letter, the company explained its mission to help songwriters and other musical artists attain the highest level of creativity as well as commercial potential.

Forming ties with partners globally helps achieve these goals. One such partner is the popular social media platform TikTok which is becoming strikingly influential each passing day with its massive user base worldwide and powerful technology. UMG claimed that music by its artists contributes to a large portion of TikTok’s success as one of the largest social platforms in the world.

Universal Music Group claimed TikTok’s proposed pay for the artists and songwriters comprises only a fraction of the rate similar social media platforms pay.

“Today, as an indication of how little TikTok compensates artists and songwriters, despite its massive and growing user base, rapidly rising advertising revenue and increasing reliance on music-based content, TikTok accounts for only about 1% of our total revenue.”

UMG also accused TikTok of allowing its platform to be replete with AI-generated songs. The letter emphasized that the short video app not only allowed AI infiltration but also developed tools to promote and encourage the direct creation of music using artificial intelligence on its platform. Universal Music Group explained how this affects the original artists.

“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.”

TikTok faced several other accusations from the world’s leading music company as the open letter progressed. The platform allegedly tried to bully Universal Music Group into accepting a less worthy deal compared to their previous one which is also far too less than the songs’ fair market value.

"TikTok’s tactics are obvious: use its platform power to hurt vulnerable artists and try to intimidate us into conceding to a bad deal that undervalues music and shortchanges artists and songwriters as well as their fans."

UMG acknowledged that pulling its artists’ catalog from TikTok would upset fans who got used to accessing popular songs on the platform and getting creative with them. However, the company said its primary responsibility is its artists, their value, and appropriate compensation for their hard work.

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TikTok's response

TikTok released a statement on January 30, 2024, responding to UMG.

"It is sad and disappointing that Universal Music Group has put their own greed above the interests of their artists and songwriters. Despite Universal's false narrative and rhetoric, the fact is they have chosen to walk away from the powerful support of a platform with well over a billion users that serves as a free promotional and discovery vehicle for their talent."

The platform also claimed that they have reached "'artist-first' agreements" with all major labels except UMG, which shows that the latter's actions are "self-serving" and not in the interest of musicians or fans.