TikTok users will no longer be able to create videos soundtracked by songs by Taylor Swift, Jon Batiste, Voisinius and other Universal Music Group artists after contract negotiations between the two companies broke down.
TikTok’s access to Universal’s vast artist roster ended on Wednesday after months of negotiations failed to reach a new agreement with the world’s largest music company.
TikTok has started muting short videos featuring the label’s artists.
The high-profile controversy erupted as music industry executives and artists gathered in Los Angeles for Sunday’s Grammy Awards ceremony.
“The agreement with TikTok is important because of TikTok’s reluctance to adequately compensate artists and songwriters, protect human artists from the harmful effects of AI, and address online safety concerns for TikTok users.” , the contract has expired,” a Universal spokesperson said in a statement Thursday.
The label is demanding that TikTok pay its artists compensation on par with what other social media platforms pay. Universal Music said in an open letter published Tuesday that while music is core to the app’s experience, it now accounts for just 1% of total revenue.
Universal Music also said TikTok allows artificial intelligence-generated recordings to be sent to the platform “in bulk,” which dilutes artists’ royalty pools. Concerns were also raised over “problematic content” such as sexual images of Billie Eilish. The image reportedly went viral and was viewed by millions of people before it was removed for violating community guidelines.
TikTok declined comment Thursday.
TikTok said in a previous statement that Universal Music is putting “greed over the interests of artists and songwriters.” The social video platform said music labels will exit the powerful promotional platform that reaches more than 1 billion users.
“TikTok was able to reach ‘artist-first’ agreements with all other labels and publishers,” TikTok said in a statement. “It’s clear that Universal’s selfish actions are not in the best interest of our artists, songwriters, and fans.”
On Thursday, a notification appeared on Taylor Swift’s TikTok account, which has 23.9 million followers, saying “Music is currently unavailable.” This alert previously appeared under the tab where users could browse Swift’s songs.
TikTok released a report in November touting its role as a “launching pad for creating viral hits and breaking new artists.” Its Music Impact Report found that TikTok helps users discover music and connect with artists. It also reported that users are more likely to use paid music streaming services, which provide value to artists.
“TikTok (formerly Musical.ly) has built one of the world’s largest and most valuable social media platforms with the help of artists and songwriters, yet artists should be grateful for the ‘free promotion.’ “We continue to maintain that this is the case,” Universal said.
Wall Street analysts praised Universal’s move. JPMorgan analyst Daniel Carven said in a research note that the label had “little to lose and much to gain,” estimating it would lose less than $109 million from TikTok’s exit. He said this would be partially offset by users listening to music on competing apps. .
The muting of countless chart-topping songs caused shock among some young users who use the music as background music for TikTok trends.
A user named Alexa posted a slow-motion video of herself shaking her head in disbelief, adding the text: “What do you mean you’re taking Taylor Swift’s music off TikTok??”
This led to jokes that fans would turn to Meta’s short-form video competitor, which some see as a less cool version of TikTok.
“I’m worried we’ll have to move to[Instagram’s]Reels,” one commenter wrote.
