UMG-TikTok dispute over AI hits Swifties

The UMG-TikTok clash takes center stage in the news today. In a shocking turn of events, Universal Music Group (UMG), the global music powerhouse, has decided to remove its extensive music catalog from TikTok, one of the world’s largest short-form video platforms. The dispute, set to take effect on February 1, 2024, arises from failed negotiations between UMG and TikTok over a new licensing agreement.

The core of the UMG-TikTok dispute: Compensation, AI concerns, and safety

According to UMG’s harsh open letter, the crux of the matter revolves around three key issues. Firstly, UMG accuses TikTok of offering “a fraction of the rate” that other major social platforms pay for the use of music. Despite TikTok’s massive user base and skyrocketing advertising revenue, it reportedly contributes only about 1% to UMG’s total income.

Secondly, UMG expresses concerns about TikTok’s promotion of AI-generated music. They fear that TikTok’s allowance of AI-generated recordings and tools to enable AI music creation could “dilute the royalty pool” for human artists, essentially raising the specter of artists being replaced by AI-generated content.

The third major issue revolves around TikTok’s handling of copyright infringement, content adjacency issues, and user safety. UMG accuses TikTok of having “monumentally cumbersome” takedown processes and inadequate efforts to address hate speech, bigotry, bullying, and harassment on the platform.

Universal Music Group (UMG) boasts a roster of some of the most renowned and successful artists across various genres. Here are just a few of the many talented singers associated with Universal Music Group that will be affected by the UMG-TikTok dispute:

• Taylor Swift
• The Weeknd
• Olivia Rodrigo
• Billie Eilish
• Drake
• Lady Gaga
• Adele
• Justin Bieber
• Katy Perry
• Ariana Grande
• Ed Sheeran
• Kendrick Lamar
• U2
• Sam Smith
• Maroon 5
• Post Malone
• Shawn Mendes
• Imagine Dragons
• Rihanna
• Elton John

This list is by no means exhaustive, as Universal Music Group represents a vast array of artists spanning different genres and eras.

TikTok’s response

TikTok responded to Universal Music Group’s decision to remove its music catalog, expressing sadness and disappointment. The statement accused UMG of prioritizing greed over the interests of artists and songwriters. TikTok contested UMG’s narrative, emphasizing its platform’s powerful support with over a billion users, serving as a free promotional and discovery tool. TikTok highlighted successful ‘artist-first’ agreements with other labels and publishers, suggesting UMG’s actions were self-serving and not in the best interests of artists, songwriters, and fans.

The response reflects the ongoing UMG-TikTok clash between platforms and the music industry in navigating financial considerations and exposure opportunities.

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What UMG wants: Artist-centric initiative and contract renewal

UMG highlights its efforts to address these issues with other platform partners through initiatives like the Artist-Centric initiative, designed to update streaming’s remuneration model and better reward artists. They claim positive reception from various partners, emphasizing a commitment to embracing the promise of AI while ensuring artists’ rights are protected.

However, UMG points out that TikTok’s proposed compensation for artists and songwriters falls significantly short of industry standards, despite its substantial user base and revenue. The open letter suggests that TikTok is attempting to build a music-based business without paying fair value for the music.

The contract between UMG and TikTok, set to expire on January 31, 2024, becomes a focal point in the dispute. UMG claims that, as the renewal discussions progressed, TikTok attempted to pressure them into accepting a deal worth less than the previous one, using tactics such as selectively removing the music of certain developing artists.

Impact on fans, artists, and TikTok itself

The consequences of this dispute are far-reaching. Fans are likely to experience a quieter and less musically charged TikTok, as UMG’s music represents a substantial portion of the platform’s popular content. UMG artists, including global stars like Taylor Swift, The Weeknd, Olivia Rodrigo, Billie Eilish, and Drake, stand to lose exposure and potential revenue from TikTok’s vast audience.

TikTok, in turn, faces a significant blow, losing a substantial chunk of its content and potentially experiencing decreased user engagement without UMG’s music library.

UMG’s final stand: Upholding responsibilities despite challenges

UMG concludes its open letter by emphasizing its commitment to fighting for artists and songwriters, refusing to accept a deal that undervalues music and compromises the interests of creatives. Despite recognizing the challenges ahead, UMG remains steadfast in its responsibility to secure a new agreement that appropriately compensates artists while ensuring a safe and creative environment for all users.

The clash between UMG and TikTok marks a pivotal moment in the ongoing evolution of the digital entertainment landscape, shedding light on the complexities of compensation, AI’s role in the industry, and the responsibility platforms bear in creating safe and respectful online spaces.

Featured image credit: Rosa Rafael/Unsplash

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• Source: https://dataconomy.com/2024/01/31/umg-tiktok-dispute-over-ai-hits-swifties/