TikTok loses access to Universal music library in dispute over fair pay
UMG and social platform accuse each other of greed as contract expires | UK artists to receive enhanced protection under music streaming code.
Universal Music Group (UMG) has said it is calling “time out” on TikTok for refusing to pay artists fairly in a scathing open letter that marked the end of its music licensing agreement with the social platform.
TikTok’s contract with UMG expires today, January 31, and the breakdown in negotiations over its renewal will mean that some of the most-played music in the world—including songs by Taylor Swift, Ariana Grande and The Beatles—will no longer be available for TikTok users.
Among its complaints, UMG said TikTok was “trying to build a music-based business, without paying fair value for the music” and allowing its platform to be “flooded with AI-generated recordings”.
It said that the social media giant only accounted for about 1% of UMG’s total revenue despite TikTok’s massive user base, rapidly rising advertising revenue and reliance on music-based content.
‘Artist-first’ approach
UMG claimed the social platform’s actions were at odds with its “artist-centric initiative”, through which UMG said it wanted to tackle infringement and online safety issues as well as ensuring proper compensation for music makers.
The multinational corporation was the first major music company to license its recorded music for social platforms in 2017 with a deal that covered Facebook, Instagram and virtual reality brand Oculus, now part of Meta.
UMG’s deal with TikTok was reached in February 2021, Reuters reported, and allowed music clips from UMG’s catalogues to be played on the short-form video app.
TikTok’s response to UMG’s accusations was that it had been able to reach “artist-first” agreements with every other label and publisher and that UMG had put its own “greed” above the interests of its artists and songwriters.
In July last year, TikTok and Warner Music Group announced a “wide-ranging, first-of-its-kind partnership” under which Warner’s content was licensed to TikTok and its own streaming platform, TikTok Music. It has an agreement with Sony Music dating back to 2020.
Bloomberg reported in 2023 that multiple record labels were asking TikTok to pay out more for the use of their music.
That year, TikTok was also accused of running an “experiment” in Australia to see how users reacted if the music they had access to was significantly reduced.
New code sets standards for good practice
The issue of music artists’ rights was also in the spotlight as the UK Intellectual Property Office published a new music streaming code today.
In a fast-changing landscape, the code is aimed at improving transparency in the music streaming industry and ensuring better protection for artists.
The voluntary code sets “a framework for minimum standards for good practice” in the UK music market and has been signed by 12 music industry organisations, including the British Phonographic Industry (BPI), Music Producers Guild (MPG) and Music Publishers Association (MPA).
Commenting on the new code, Minister for AI and intellectual property Viscount Camrose said: “In the last decade, the way that we consume our music has changed markedly, and that’s why we’re taking steps to help ensure artists get the royalties and protections they deserve when their music is played on streaming platforms.”
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