Universal Music Group (UMG) has announced its intention to withdraw its entire music catalogue from TikTok as its contract with the platform expires on Wednesday, January 31, 2024. In an open letter addressed to UMG artists and songwriters, the company cited concerns over TikTok’s inadequate compensation rates, rampant infringement of artists’ works, and the platform’s stance on artificial intelligence (AI).
According to UMG, TikTok proposed payment rates that fall significantly below industry standards, leading to dissatisfaction during negotiations. The social giant also allegedly sought a contractual right to dilute the royalty pool for human artists by promoting AI-generated content. UMG claims that TikTok responded with indifference and later attempted to intimidate them into accepting an unfavourable deal.
The potential withdrawal of UMG’s catalogue would impact all music distributed and administered by its recorded music division and Universal Music Publishing Group. The company represents a diverse roster of global stars, including Taylor Swift, BTS, Drake, Ariana Grande, and Eminem. Notably, Jamaican talents such as Buju Banton, Masicka, and Shenseea signed to UMG subsidiaries are among those who could be affected.
TikTok responded to UMG’s stance, expressing disappointment and emphasizing the platform’s role as a free promotional and discovery tool for artists with over a billion users. TikTok highlighted its artist-first agreements with other labels and publishers, suggesting that UMG’s decision prioritizes greed over the interests of artists and songwriters.
This dispute follows the previous licensing deal between UMG and TikTok announced on February 8, 2021. The music industry has had prior issues with TikTok, including copyright concerns raised by the National Music Publishers’ Association in 2019 and short-term licensing deals with all three major labels in March 2020. The current standoff raises questions about the evolving dynamics between music industry giants and emerging digital platforms.
