TikTok
has received a strong warning from Universal Music Group (UMG) about the possible cancellation of the platform’s license. The news was made on Wednesday in the wake of the two parties’ inability to reach an agreement on important issues, most notably artist remuneration. Among the well-known performers under UMG’s management are Billie Eilish, Olivia Rodrigo, and Taylor Swift. Since that about 60% of TikTok’s content incorporates music, the app may suffer a great deal if its license were to be terminated, which is a real possibility.
The biggest record label in the world is pressuring TikTok to improve artist compensation and respond to concerns about AI-generated music on the Chinese-owned video-sharing website.
Universal accused TikTok in an open letter of trying to create a music-focused business model without paying artists enough for their work. The two parties have been in negotiations, and their current contract is set to expire on Wednesday. Still, no fresh deal has been struck.
During the course of the negotiations, a number of issues have come up, such as worries about just pay for composers and artists, user safety online, and protecting artists from the possible detrimental effects of artificial intelligence.
Despite the platform’s substantial development, Universal claimed that TikTok attempted to pressure them into agreeing an agreement that undervalued the music and did not meet fair market standards.
Social networking and streaming sites provide royalties to major music labels. Universal did point out that TikTok’s suggested pay rates were significantly less than those of other social media firms in a comparable position.
TikTok responded with disappointment, charging that Universal Music Group had put its own bottom line ahead of its artists’.
The impasse between Universal Music Group and TikTok highlights the intricate web of digital music distribution and the continuous difficulties in guaranteeing fair recompense for musicians in the era of social media platforms.