UMG to pull music catalogue from TikTok amid failed talks

UMG says that negotiations for a new licence with TikTok fell through when discussions on fair compensation for artists and songwriters, protection from the potential adverse effects of AI on human artists, and online safety.

TikTok, owned by China’s ByteDance, enjoys 1 billion global monthly active users worldwide. The company boasts strategic partnerships from Warner Music Group to Africa-facing DSP Boomplay. According to the platform’s 2023 Music Impact Report, its users are the ‘most fervent music consumers’, and demonstrate a heightened likelihood of using paid music streaming services compared to the average consumer.

In an open letter to the artist and songwriter community on Wednesday, UMG stresses its commitment to supporting artists and songwriters in achieving their creative and commercial potential. It adds that its efforts, aimed at updating streaming’s remuneration model, have been positively received by various partners.

UMG also asserts its dedication to safeguarding artists’ rights and addressing online safety concerns. “Intimidation and threats will never cause us to shirk those responsibilities,” the letter states.

Regarding artist and songwriter compensation, UMG criticised TikTok for proposing payment rates significantly lower than those of similar major social platforms. Despite TikTok’s substantial user base, rising advertising revenue and reliance on music-based content, it contributes only about 1% to UMG’s total revenue.

The letter accuses TikTok of attempting to build a music-based business without fairly compensating artists.

On the issue of AI, UMG expressed concern about TikTok’s acceptance and promotion of AI-generated recordings, potentially diluting the royalty pool for human artists. The platform’s inadequate handling of infringing content and lack of solutions for content adjacency and issues like hate speech and harassment are also raised.

UMG asserts that TikTok responded to their proposals with indifference and intimidation. Allegedly, TikTok attempted to pressure UMG into accepting a deal undervaluing music by selectively removing the music of certain developing artists while retaining that of global stars.

“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.”

Meanwhile, TikTok has, in an official response, accused UMG of prioritising their own greed over the welfare 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. Universal’s self-serving actions are not in the best interests of artists, songwriters and fans.”