Due to an unsuccessful content licensing deal, Universal Music Group's (UMG) artists' music has gone from TikTok.
After UMG's licensing arrangement with ByteDance's TikTok expired Thursday morning (Feb. 1), Taylor Swift's songs were removed from the popular social media platform owned by Chinese tech firm ByteDance.
A public disagreement has resulted from the circumstances, with UMG leading the claims of bullying and intimidation throughout the negotiation process. According to CNBC, the record label asserted that TikTok's proposed payment rates for artists and songwriters are significantly lower than those offered by other major social platforms.
US singer-songwriter Taylor Swift performs onstage on the first night of her "Eras Tour" at AT&T Stadium in Arlington, Texas, on March 31, 2023.
UMG, TikTok Engage in Public Spat
UMG contended that TikTok demonstrated indifference and intimidation during negotiations, claiming the platform attempted to force an unfavorable deal. The intimidation, as per UMG, involved selectively removing music from certain developing artists while retaining content from global stars.
After the deal expired, TikTok began eliminating audio material, a UMG representative said. UMG also claimed TikTok enabled AI-generated recordings to overwhelm its site.
In response, TikTok accused UMG of favoring its profits over those of artists and composers. "Clearly, Universal's self-serving actions are not in the best interests of artists, songwriters, and fans," the social media firm stated, according to Fox News.
TikTok also refuted UMG's claims, dismissing them as a "false narrative" and highlighting successful licensing agreements with other major music labels.
TikTok has become a major music business player in recent years, with the capability to make songs go viral via user-generated videos. Moreover, the platform helps record labels discover new music artists, market their work, and reach a wider audience. However, the music business is divided on whether TikTok pays featured musicians enough.
Universal charges social media licensing fees like other music labels. The recording firm also owns the music of Lady Gaga, Justin Bieber, Billie Eilish, The Rolling Stones, and Drake.
Fair Compensation for Music Artists Sought
This development follows challenges faced by ByteDance in 2022 when expanding its Resso music streaming service. Sony Music Entertainment temporarily withdrew its music from Resso during the expansion, leading Resso to rebrand as TikTok Music and eliminate its free tier. Concerns escalated in the subsequent year as TikTok limited song choices for Australian users, perceived by labels as a test of music's value on the platform.
While Warner Music Group and Sony Music secured new licensing deals with TikTok, UMG used its influence to advocate for improved artist compensation across various streaming services. UMG positioned TikTok as a substantial platform akin to YouTube, emphasizing the necessity for fair rates.
Despite TikTok's payments to music rights holders, UMG asserted that it contributes only 1% to its overall revenue, a figure seemingly incongruent with TikTok's expanding user base, burgeoning advertising revenue, and growing reliance on music-centric content. According to The Irish Times, ByteDance's 2024 revenue was recorded at over $110 billion.
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