Universal Music Group Contemplating Withdrawal From TikTok Over AI-Generated Music Impact on Artist Royalties
Is this the end of a harmonious partnership? Universal Music Group (UMG) has raised concerns and may sever its ties with TikTok. In an open letter, UMG outlined several issues that have put their collaboration with the social media giant in jeopardy.
One major point of contention is artist and songwriter compensation. UMG alleges that TikTok has proposed paying its artists and songwriters at a rate far below what other major social platforms offer. Despite TikTok’s enormous user base and surging advertising revenue, it reportedly contributes only a minuscule fraction of UMG’s total revenue, accounting for just about 1%.
Additionally, UMG expressed ethical concerns regarding artificial intelligence (AI) on the platform. TikTok allows the use of various AI-generated records and supports users with tools designed for AI music creation. UMG worries that interactions with AI-generated music will significantly dilute the royalty pool for human artists.
UMG has engaged in discussions with TikTok’s executives to negotiate a new deal. However, they claim that TikTok is attempting to persuade them, even resorting to intimidation tactics, to accept an agreement valued at less than their previous deal.
UMG’s current contract with TikTok is set to expire on January 31, 2024. In response, TikTok issued a statement accusing UMG of prioritizing its own interests over those of its artists and songwriters. TikTok highlighted that it has reached “artist-first” agreements with other labels and publishers, emphasizing that UMG’s actions do not serve the best interests of artists, songwriters, and fans.
The future of this music partnership remains uncertain as both parties stand their ground in a dispute over compensation and the role of AI in the music industry. Will UMG’s music continue to play on TikTok, or is this the end of the tune? Stay tuned for updates on this evolving story.
