Universal Music and TikTok: the divorce?

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Universal challenges TikTok and accuses it of "trying to build a business based on music, without paying fair value for the music".

Universal Music Group (UMG) has begun deleting from TikTok the music catalogs of the artists the label represents (Taylor Swift, Drake, Olivia Rodrigo...), following the failure of negotiations to renew the licensing agreements between the two entities. The previous licensing agreement between UMG and TikTok expired on January 31. From now on, tracks belonging to the UMG label appearing in TikTok videos will be muted. Users wishing to replace deleted songs will be invited to select alternative options from other music labels.

UMG vs TikTok: the reasons for the anger

To date, the two giants have been unable to reach a mutually satisfactory agreement on three main issues: remuneration for artists and songwriters, the effects of artificial intelligence and online safety for TikTok users. 

In a sign that relations are at a standstill, on Tuesday, in a scathing open letter entitled " Why we need to call a time-out on TikTok " UMG, the world's largest music industry major, did not hesitate to accuse TikTok of trying to "intimidate" it into "accepting a deal worth less" than the previous one. 

Calling Universal's statements "false", TikTok (owned by Chinese company ByteDance) accused the music label of placing "its own greed above the interests of its artists and songwriters". "Despite Universal's false rhetoric and rhetoric, the fact is that they have chosen to walk away from the powerful support of a platform with over a billion users that serves as a free vehicle for promoting and discovering their talents," the platform said on its website. To add insult to injury, TikTok said it had reached similar agreements with other music labels and publishers such as Warner Music Group. "Clearly, Universal's selfish actions are not in the best interests of artists, songwriters and fans."

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AI, a danger for musicians' copyright

Beyond remuneration, UMG also raised concerns about Artificial Intelligence, and more specifically the question of copyright. According to UMG, the platform would be "flooded with AI-generated recordings" and tools designed "to encourage AI-driven music creation on the platform itself". In the firing line, TikTok's "AI Song" functionality. Currently in the testing phase on the Chinese social network, "AI Song" would generate a song from a simple phrase.

A lose-lose disagreement

In the absence of an agreement between the two companies, all Universal-licensed music "will be phased out of the service once the agreement expires", a UMG spokesperson told Reuters. But while the loss of the world's largest music catalog would be a blow to TikTok, let's not forget that royalties paid by streaming services and social networks bring in billions of dollars every year to the music industry giants. TikTok accounts for 1% of UMG's total revenues.

Universal Music Group: an essential catalog

As a reminder, UMG holds (among others) the rights to artists such as The Beatles, Bob Dylan, Elton John, Drake, Sting, the Weeknd, Kendrick Lamar, Ariana Grande, Justin Bieber, Adele, U2, Coldplay, but also Taylor Swift, Harry Styles and the new viral hit Murder On. In 2021, albums from UMG and its family of labels topped the Billboard 200 for 38 weeks. A record.

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