OAN’s Elizabeth Bolbelding
2:04 PM – Wednesday, January 31, 2024
Universal Music Group, one of the world’s leading music companies, announced in a statement that it will remove its songs from video platform TikTok, citing underpayments to songwriters and artists.
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On Wednesday night, TikTok’s music library, which includes songs by Drake, Olivia Rodrigo, Taylor Swift, Bad Bunny and many others, will be erased unless the social media platform and Universal Music Group (UMG) reach an agreement on compensation. That will happen.
With an estimated 1.5 billion monthly users, TikTok has become an important platform in the modern music industry because it allows videos to incorporate music from the catalogs of major record labels.
However, UMG announced early Wednesday morning that it would remove the songs, citing lack of payment to songwriters and artists.
“TikTok offered to pay artists and songwriters a fraction of the fees paid by similarly located major social platforms,” UMG said. “Ultimately, TikTok is trying to build a music-based business without paying a fair price for the music.”
“We recognize the challenges that TikTok’s actions will cause and do not underestimate what this means for artists and their fans. “We are among those exposed to the short-term consequences of not wanting to attack something close to us,” UMG added. “We will evaluate the transaction and meaningfully address our obligations as a social platform.”
TikTok, owned by Chinese company ByteDance, issued its own scathing response, accusing UMG of putting “its own desires over the interests of artists and songwriters.”
According to UMG, TikTok artists accounted for 8 out of 10 of the most famous bands and singers on TikTok last year, but the platform generated only 1% of ad revenue. Approximately 60% of TikTok videos include music.
One of the “big three” global music companies is American-Dutch-owned UMG. Licensed artists include Coldplay, Adele, Billie Eilish, Ariana Grande, SZA, Elton John, Bob Dylan, U2 and many other famous artists.
in letter to the artist UMG’s article titled “Why We Should Call Time Out on TikTok” stated, “Ultimately, TikTok is trying to build a music-based business without paying its fair value for music.”
Additionally, UMG expressed concern about the acceleration of artificial intelligence (AI) tools utilized in TikTok videos and its impact on intellectual property. The record company also complained about the amount of copyright-infringing content and the “wave of hate speech, bigotry, bullying and harassment.”
“As our negotiations continue, TikTok bullies us into a deal that is less valuable than the previous deal, one that is far below fair market value and does not reflect its rapid growth. “We tried to get them to accept it,” UMG said.
UMG further reported that TikTok is attempting to threaten TikTok by “selectively removing the music of certain developing artists” and retaining “global stars who drive viewership.” .
TikTok said: “The fact is they have chosen to walk away from the strong support of a platform with well over 1 billion users that serves as a free way to promote and discover their talent.”
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