TikTok has issued a strong statement in response to Universal Music Group’s decision to remove its catalog from the popular short-form video platform. The statement condemns Universal’s actions, accusing the music giant of prioritizing greed over the well-being of its artists and songwriters.
“It is sad and disappointing that Universal Music Group has put their own greed above the interests of their artists and songwriters,” the Beijing based platform said.
According to TikTok, despite Universal’s attempt to shape a narrative suggesting a different story, the reality is that they have opted to distance themselves from a platform with a staggering user base exceeding a billion. TikTok, renowned for its global reach, is perceived by the company as a crucial promotional and discovery tool that caters to the interests of both artists and their fanbase.
In Universal Music Group’s (UMG) stern letter addressing its ongoing contract renewal discussions with the popular social media platform TikTok they outline three crucial issues – fair compensation for artists and songwriters, protection against the impact of AI on human artists, and ensuring online safety for TikTok users. UMG accuses TikTok of proposing inadequate payment to artists and songwriters, fostering the growth of AI-generated content, and neglecting its responsibility to address issues like copyright infringement and online safety.
According to UMG, TikTok has proposed a payment rate significantly lower than what other major social platforms offer, despite TikTok’s massive user base and increasing reliance on music-based content.
“With respect to the issue of artist and songwriter compensation, TikTok proposed paying our artists and songwriters at a rate that is a fraction of the rate that similarly situated major social platforms pay,” UMG said.
TikTok currently contributes only about 1% to UMG’s total revenue, a figure that UMG considers disproportionate given TikTok’s global influence.
UMG also claims that TikTok’s demand for a contractual right allowing AI-generated content to dilute the royalty pool for human artists amounts to sponsorship of artist replacement by AI. This raises concerns about the impact on artists’ income and the potential devaluation of human creativity in the music industry.
Online Safety Concerns
UMG also criticizes TikTok for its purported lack of effort in addressing copyright infringement and other content-related issues. The platform is accused of allowing a significant amount of content that infringes on artists’ music to proliferate. Additionally, TikTok is said to have offered no meaningful solutions to the rising tide of content adjacency issues, including hate speech, bigotry, bullying, and harassment. UMG contends that the current process for content removal is cumbersome and inefficient, likening it to a digital version of “Whack-a-Mole.”
UMG says TikTok wants to exploit its power to harm vulnerable artists and coerce UMG into accepting a deal that undervalues music and leaves artists and songwriters under-compensated.
The social media platform January 31 response asserts that it has successfully negotiated ‘artist-first’ agreements with every other major label and publisher, emphasizing a cooperative approach that aligns with the best interests of all parties involved. TikTok claims that Universal’s actions are driven by self-interest and do not reflect a commitment to the flourishing ecosystem of artists, songwriters, and fans.
The clash between TikTok and Universal Music Group comes as music earnings have exceeded record numbers last year and is the latest in the ongoing challenges and negotiations within the music industry as it adapts to the digital era.
As these key players navigate the evolving landscape, questions arise regarding the balance between the pursuit of profit and the cultivation of mutually beneficial relationships with platforms that have become integral to contemporary music promotion.
The music of several reggae and dancehall artist are set to be removed including Shaggy, Skip Marley, Jimmy Cliff, Bob Marley, Sean Paul, Beenie Man, Chaka Demus and Pliers, Luciano and more.
Universal Music Group is the largest record label in the world accounting for almost 1000 artists across genres. Taylor Swift, Drake, Rihanna Nicki Minaj, Daddy Yankee and other top acts are all under the French owned Vivendi Universal company.
Full Statement from TikTok:
“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.
TikTok 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.”
