Universal Music Group (UMG) said: “TikTok is trying to build a business based on music without paying a fair price for music”.
Songs by Taylor Swift, Lady Gaga, Drake, BTS… may disappear from TikTok on January 31.
Accordingly, UMG confirmed that it will withdraw its song catalog from TikTok after failing to reach terms in a new licensing agreement with the social video platform TikTok.
UMG announced the move in an open letter to artists and musicians titled: “Why should we stop working with TikTok?”.
The open letter stated: “During contract renewal discussions, we pressed them (TikTok) on 3 important issues: paying adequate fees to artists and musicians, protecting artists from Harmful effects of AI and online safety for TikTok users TikTok offers to pay artists and musicians a fraction of what similarly positioned major social platforms have to pay”; and added that TikTok currently accounts for only about 1% of UMG’s revenue.
Regarding AI, UMG argues that: “TikTok is allowing the platform to be flooded with AI-generated recordings, as well as developing tools to enable, promote and encourage AI music creation on that very platform, reducing the source of royalties for artists. This move is no different from sponsoring the replacement of artists with AI.”
The above decision was made a few days before the 2024 Grammy Awards (taking place on the evening of February 4, Los Angeles time, USA).
“We recognize the challenges that TikTok poses and assess what this will mean for artists and fans who will unfortunately be among those who will suffer the short-term consequences from TikTok”, the letter concluded.
TikTok responded to UMG with a statement on the evening of January 30: “It is sad and disappointing that UMG has put its greed above the interests of its artists and musicians. Despite the false accusations of UMG, they have in fact chosen to distance themselves from the strong support of a social platform with over a billion users that serves as a free promotional vehicle for their talents”.
