Allen J. Schaben | Los Angeles Times | Getty Images
Universal Music Group said on Wednesday that it will cease licensing its music to TikTok and accused the short-form video giant of bullying and intimidation in its contract negotiations.
A music licensing agreement between UMG and TikTok, which is owned by Chinese tech giant ByteDance, expired on Wednesday, and new terms have not been agreed. This means that UMG could pull its music catalog from TikTok.
UMG said in an open letter published on Wednesday that it has been “pressing” TikTok during contract discussions on three issues — “appropriate compensation for our artists and songwriters, protecting human artists from the harmful effects of AI, and online safety for TikTok’s users.”
The music label, which represents megastars from Taylor Swift to Drake, said that TikTok proposed paying its artists and songwriters “at a rate that is a fraction of the rate that similarly situated major social platforms pay.” UMG said only 1% of its total revenue comes from TikTok, despite the social network’s “massive and growing user base, rapidly rising advertising revenue and increasing reliance on music-based content.”
UMG also alleged that TikTok is allowing its platform to be “flooded with AI-generated recordings,” as well as developing tools to “enable, promote and encourage AI music creation.” According to UMG, TikTok is “demanding a contractual right which would allow this content to massively dilute the royalty pool for human artists, in a move that is nothing short of sponsoring artist replacement by AI.”
The music industry has been grappling with the rise of artificial intelligence, which can generate music and even mimic the voices of big artists.
UMG also said that TikTok “makes little effort to deal with the vast amounts of content on its platform that infringe” artists’ music.
The label company accused TikTok of bullying and intimidation tactics in contract negotiations.
“When we proposed that TikTok takes similar…
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