Millions of songs will be taken down from TikTok after talks over payment with Universal Music fell through. It means a wealth of material from huge artists will no longer be available.
TikTok is once again facing controversy. This time, itโs over payment and music royalty rights.
Universal Music, one of the worldโs biggest music corporations, is gearing up to pull millions of songs from TikTok after it failed to reach a deal over catalogue fees. The former accused the social media platform of โbullyingโ, claiming it wanted to pay a โfractionโ of the rate others such as Facebook and Instagram currently do to access its songs.
Our core mission is simple: to help our artists & songwriters attain their greatest creative and commercial potential, which is why we must call time out on TikTok.
Learn More: https://t.co/yJDQ7FdgNc pic.twitter.com/Lhluz1ez5H
โ Universal Music Group (@UMG) January 31, 2024
In response, TikTok said that Universal was pushing a โfalse narrative and rhetoricโ and is refusing to budge on its payment agreements.
Keep in mind that Universal is a huge organisation that controls and owns roughly a third of the worldโs music. Similarly, TikTok boasts over 1.2 billion users as of October 2023. The two companies being unable to find common ground is likely to hurt artists and creatives that rely on both to operate, especially lesser known and smaller acts.
What has Universal accused TikTok of doing?
In an open letter to โthe artist and songwriter communityโ, Universal alleged TikTok of trying to build a โmusic-based businessโ without โpaying fair valueโ for said music.
Universal explains in its letter that it has pressed for three key points during contract renewals with TikTok: โappropriate compensation for artistsโ, protecting โhuman artists from the harmful effects of AIโ, and โonline safety for TikTok usersโ. It also claims that TikTok only accounts for 1% of its total revenue, despite being a significant influence on its business model.
The music companyโs hits at TikTok go further, too. It says that the platform makes โlittle effortโ to deal with the โvast amounts of content [โฆ] that infringe our artistsโ musicโ and has โoffered no meaningful solutions to the rising tide of content adjacency issuesโ.
Universal says that TikTok reduced its proposed terms of payment after initial discussions fell through, threatening to remove music from smaller and emerging artists and prioritising big names such as Taylor Swift and the Weeknd, among many others. It says that TikTokโs tactic is to โhurt vulnerable artistsโ and push Universal into a โbad deal that undervalues musicโ.
TikTokโs response was brief, describing Universalโs claims as โsad and disappointingโ. It said that the music company had โput their own greed above the interests of artists and songwritersโ, describing the open letter as a โfalse narrative and rhetoricโ.
Universal will pull all of its songs from the platform any moment now, as its contract with TikTok expired on the 31st January 2024. This means that all songs owned by the company will no longer be accessible, including Harry Styles, Ariana Grande, Coldplay, Billie Eilish, and many, many others.
Why is this communication breakdown a big deal?
While removing music by huge, global superstars is unlikely to affect the growth and popularity of artists like Bad Bunny and Drake, it will have an impact on smaller acts trying to make a name for themselves.
As mentioned, TikTok enjoys a huge user base, and has a significant role in shaping modern music trends. The Spotify Top 50 charts are now usually a mix of old and new tracks, no doubt in part thanks to viral snippets being shared across TikTok and Instagram.
Universal is right to highlight just how vast and influential TikTok has become for the industry.