TikTok users are certainly disappointed. They can no longer listen to songs by Taylor Swift, The Weeknd, The Beatles and other artists, or add them to their videos, following a breakdown in negotiations with Universal over compensation.
All tracks recorded under the Universal Music Group (UMG) license were in fact removed from TikTok’s music library on Thursday, February 1, and all videos containing music under the Universal license were muted. The previous licensing agreement between UMG and TikTok expired on January 31.
Among the issues raised during negotiations were appropriate compensation for artists and songwriters, online security for users, Universal said. Majora noted other problems, such as the presence on the platform of a large number of recordings generated by artificial intelligence. She also accuses the application of not fighting sufficiently against violations of artists’ rights. Universal’s roster of artists is immense and includes Kendrick Lamar, U2 and Bob Dylan.
“TikTok tried to intimidate us”
After the failure of negotiations, the main global major in the music industry on Tuesday accused TikTok of “trying to build a business based on music, without paying its fair value for music”. As negotiations progressed, “TikTok attempted to intimidate us into accepting a deal worth less than the previous deal, well below fair market value and not reflecting its exponential growth “, regretted Universal.
Major record labels receive royalties from streaming platforms and social media. Universal said, however, that TikTok was offering to pay “a rate that is only a fraction of the rate paid by major platforms in a similar situation.”
Calling Universal’s statements “false”, TikTok believes that the record company has “chosen to turn away from the powerful support of a platform that has more than a billion users and which serves as a vehicle for promotion and free discovery for their talents. TikTok also said in a statement that it was “sad and disappointing that Universal Music Group put its own greed ahead of the interests of its artists.”
Despite TikTok’s large user base, this deal with the platform represents only about 1% of Universal’s total revenue, the record company said. Owned by the Chinese group ByteDance, TikTok is one of the most popular social networks in the world, with more than a billion users. It constitutes a major springboard for emerging artists and is used as a promotional tool by music labels.