Music by Taylor Swift, Drake, Olivia Rodrigo and others will disappear from TikTok by the end of Wednesday unless the social media giant can agree to a deal with Universal Music Group.
TikTok's estimated 1.5 billion monthly users can enhance their videos with music from across the catalogs of major record labels, making it a vital part of the modern music ecosystem. However, UMG announced in a statement early Wednesday morning that it would no longer provide the music due to a lack of compensation to artists and songwriters.
“TikTok offered to pay artists and songwriters a fraction of the fees paid by similarly located major social platforms,” UMG said.
TikTok, owned by Chinese company ByteDance, issued its own scathing response early Wednesday, accusing the company of “prioritizing its own desires over the interests of artists and songwriters.”
UMG said TikTok artists accounted for just 1% of the company's ad revenue, even though they represented eight out of 10 of the most popular bands and singers on the platform last year. Approximately 60% of TikTok videos include music.
Dutch-American-owned UMG is one of the so-called “big three” global music companies, unrelated to NBC Universal, the parent company of NBC News. Licensed artists include The Beatles, Elton John, Bob Dylan, U2, Ariana Grande, SZA, Billie Eilish, Adele, Coldplay, and more.
In an open letter to artists entitled “Why should we call a timeout on TikTok?'' UMG wrote, “TikTok is finally trying to build a music-based business without paying a fair price for the music.'' ''.
UMG added that it is concerned about the increase in artificial intelligence tools used in TikTok videos and the impact it has on intellectual property, while also adding that it is concerned about the amount of content that infringes and “contains hate speech, bigotry and bigotry”. “The waves are rolling in,” he said. bullying and harassment. ”
“As our negotiations continue, TikTok bullies us into accepting a deal that is lower in value than its previous deal, one that is far below fair market value and does not reflect its rapid growth.” “We attempted to do so,” the company said.
UMG also claims that TikTok attempted to blackmail TikTok by “selectively removing the music of certain developing artists” while retaining “global stars who drive viewership.” There is.
TikTok has not specifically responded to this or UMG's other accusations, but it accused the company of “false narratives and rhetoric” and noted that it was able to secure deals with other major music labels.
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Last year, the company signed a music licensing agreement with Warner Music Group.
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.”