Universal Music Group to pull songs from TikTok

[Ryan]

An Open Letter to the Artist and Songwriter Community
Why We Must Call Time Out on TikTok

Our core mission is simple: to help our artists and songwriters attain their greatest creative and commercial potential. To achieve these goals, our teams employ their expertise and passion to strike deals with partners all around the world, partners who take seriously their responsibilities to fairly compensate our artists and songwriters and treat the user experience with respect.

One of those partners is TikTok, an increasingly influential platform with powerful technology and a massive worldwide user base. As with many other platforms with whom we partner, TikTok’s success as one of the world’s largest social platforms has been built in large part on the music created by our artists and songwriters. Its senior executives proudly state publicly that “music is at the heart of the TikTok experience” and our analysis confirms that the majority of content on TikTok contains music, more than any other major social platform.

The terms of our relationship with TikTok are set by contract, which expires January 31, 2024. In our contract renewal discussions, we have been pressing them on three critical issues—appropriate compensation for our artists and songwriters, protecting human artists from the harmful effects of AI, and online safety for TikTok’s users.

We have been working to address these and related issues with our other platform partners. For example, our Artist-Centric initiative is designed to update streaming’s remuneration model and better reward artists for the value they deliver to platforms. In the months since its inception, we’re proud that this initiative has been received so positively and taken up by a range of partners, including the largest music platform in the world. We’ve also moved aggressively to embrace the promise of AI while fighting to ensure artists’ rights and interests are protected now and far into the future. In addition, we’ve engaged a number of our platform partners to try to drive positive change for their users and by extension, our artists, by addressing online safety issues, and we are recognized as the industry leader in focusing on music’s broader impact on health and wellness.

With respect to the issue of artist and songwriter compensation, TikTok proposed paying our artists and songwriters at a rate that is a fraction of the rate that similarly situated major social platforms pay. Today, as an indication of how little TikTok compensates artists and songwriters, despite its massive and growing user base, rapidly rising advertising revenue and increasing reliance on music-based content, TikTok accounts for only about 1% of our total revenue.

Ultimately TikTok is trying to build a music-based business, without paying fair value for the music.

On AI, TikTok is allowing the platform to be flooded with AI-generated recordings—as well as developing tools to enable, promote and encourage AI music creation on the platform itself – and then demanding a contractual right which would allow this content to massively dilute the royalty pool for human artists, in a move that is nothing short of sponsoring artist replacement by AI.

Further, TikTok makes little effort to deal with the vast amounts of content on its platform that infringe our artists’ music and it has offered no meaningful solutions to the rising tide of content adjacency issues, let alone the tidal wave of hate speech, bigotry, bullying and harassment on the platform. The only means available to seek the removal of infringing or problematic content (such as pornographic deepfakes of artists) is through the monumentally cumbersome and inefficient process which equates to the digital equivalent of “Whack-a-Mole.”

But when we proposed that TikTok takes similar steps as our other platform partners to try to address these issues, it responded first with indifference, and then with intimidation.

As our negotiations continued, TikTok attempted to bully us into accepting a deal worth less than the previous deal, far less than fair market value and not reflective of their exponential growth. How did it try to intimidate us? By selectively removing the music of certain of our developing artists, while keeping on the platform our audience-driving global stars.

TikTok’s tactics are obvious: use its platform power to hurt vulnerable artists and try to intimidate us into conceding to a bad deal that undervalues music and shortchanges artists and songwriters as well as their fans.

We will never do that.

We will always fight for our artists and songwriters and stand up for the creative and commercial value of music.

We recognize the challenges that TikTok’s actions will cause, and do not underestimate what this will mean to our artists and their fans who, unfortunately, will be among those subjected to the near-term consequences of TikTok’s unwillingness to strike anything close to a market-rate deal and meaningfully address its obligations as a social platform. But we have an overriding responsibility to our artists to fight for a new agreement under which they are appropriately compensated for their work, on a platform that respects human creativity, in an environment that is safe for all, and effectively moderated.

We honor our responsibilities with the utmost seriousness. Intimidation and threats will never cause us to shirk those responsibilities.

[Harder Faster Daddy]

It will be interesting to see which artists see declining returns because they rely so heavily on Tik Tok for virality and attention.

Perhaps this could create a shift in the creative process and artists will stop trying to make something specifically so it could go viral and they would be more organic with their approach.

[Ryan]

[wjr15]

I was seeing who’s under UMG and there’s A LOT of heavy hitters. Pretty much every artist on Interscope, Capitol, Republic, Island, Def Jam, just to name a few, will have their music pulled.

[jenglisbe]

Jan 31, 2024 9:37:20 GMT -5 Ryan said:

Ugh typical bullshit. So, TikTok is barely paying artists at all and is saying artists should just be grateful for the promo?

[taylor]

^^ Typical corporate greed and nihilism on TikTok’s part.

This really is huge…even Taylor Swift’s music has been pulled. And this is a similar situation to her personal removal of her catalog from Spotify in 2014 but obviously on a much bigger and wider scale. I do think this could have a positive effect in one of two ways:

1) TikTok starts to lose interactions thanks to no good sounds being used (a big chunk of currently popular sounds are likely UMG, as they’re the largest label group on the planet) and their little corporate brains can’t handle that, and they come back to the table and make a deal with UMG, and everyone lives happily ever after.

2) Artists will now be forced to get creative with their promo if they’re to plug their music on TikTok. Conan Gray just announced a new album, and a new single to go with it. As he’s a UMG artist, he had to dub over the teaser of the music video for his upcoming single with a voiceover of him promoting the song and album. This is where artists like him are going to need teams that are willing to stop relying on TikTok as a crutch, and start incorporating more interactive fan events such as secret sessions, pop-up shops, media runs (i.e. going on TKCS or the Today Show, etc.), plugging any upcoming music at festivals, I could probably go on. Conan is a very creative person, so I’m sure if his team lets him take the reigns on creative promo and puts a real effort into marketing him and whatever promo he does, he’d be golden. Artists of his smaller caliber are really going to have to put their backs into it if they don’t want to see diminished returns.

I am very intrigued to see what kind of fire this lights under people in the industry, and if/how it changes the way music is marketed.

[jdanton2]

i wonder if this will effect TikTok radio. they will most likely stop playing by songs from most or all of those artists on the label.there are alot of idie labels out there that could benefit.

[bat1990]

*pops corn*

2024 has been the year of big and bold actions and we're only 1 month in!

[radio2009]

Never thought I'd side with a conglomerate but here we are. Still it would be best to break up the big record labels.

[SPRΞΞ]

obviously a deal will be made. There is too much potential money to be made to just go separate ways.

[Ryan]

[Music Fan]

I agree that this is not a loss for TikTok at all, but rather for UMG. TikTok can function without music, the music *may* or *may not* be able to function without TikTok. What I hope happens is labels start getting creative again about how they market their artists and new music.

[otaviohmg]

Many videos that I made on TikTok got muted because I used some songs owned by them for mashups. Yikes

[Daenerys]

@rosaliner, great post.

I was also skeptical about Tik Tok really being concerned about UMG pulling it's music. I doubt Tik Tok users care much about what songs they want to use or feature, they just want to be apart of the trends. They'll use other sounds from other labels, and ride the next wave.

Maybe we'll start seeing more promotions and such on platforms like YouTube.

[boscy]

UMG vs TikTok…Sh*t Just Got Real by Rick Beato

[cartman2002]

Maybe we post a poll about this controversy.

[YourFaveIsAFlop]

On one hand, it's goings to hurt UMG's artists because they're going to be missing out on a lot of exposure. On the other hand, TikTok's entire business model is built on using copywritten material to generate content without properly compensating the copyright holders. So either bytedance starts paying market rate per audio use (which they will not want to do of their own freewill) or they're going to continue to lose access. Where I see this going is bytedance cuts a deal with labels to allow for audio use at a certain compensation rate, and the cost of that is going to be passed on to consumers, either through increased ad presence (which will kill engagement which bytedance doesn't want) or through forcing more users into Tiktok Premium to get the experience they're currently getting.

[otaviohmg]

Universal Music Publishing Group didn't renewed their contract too and TikTok removed more songs

www.musicbusinessworldwide.com/tiktok-umgs-catalog-30-percent-our-platform/

musically.com/2024/02/27/tiktok-is-removing-tracks-using-umpg-controlled-compositions/

[Harder Faster Daddy]

After pulling their roster's music from TikTok, Universal Music Group CEO announced a label restructure, with market leaders Interscope and Republic being the two main companies. The restructure is being divided in two areas: East Coast (Republic) and West Coast (Interscope). Now both companies will oversee the rest of the labels while they keep their independence for creative A&R and marketing strategies, they will also access to the main companies' talent and resources to help their artists reach new levels of success, including radio promo.

New Label System

Republic
(Def Jam, Island, Mercury)

Interscope
(Capitol, Motown, Blue Note, Geffen, Priority, Verve)

For example Kings of Leon recently signed to Capitol, their first release is being promoted to radio through Capitol/Interscope
www.billboard.com/business/record-labels/universal-music-restructuring-labels-monte-lipman-john-janick-1235595516/amp/

Lay offs were announced today:
m.hitsdailydouble.com/news&id=340030&title=VARIETY%3A-LAYOFFS-BEGIN-AT-UMG

[otaviohmg]

Lay offs but the problem is unfair payment from tiktok 😴😴😴

[jenglisbe]

Mar 2, 2024 4:54:39 GMT -5 otaviohmg said:

Lay offs but the problem is unfair payment from tiktok 😴😴😴

Well isn't it an established fact that there is less revenue from streaming and social media than from when music was dominated by physical product? If Spotify and TikTok aren't going to pay much for songs being used and that's the primary form of music consumption, then of course labels are going to have to downsize. What am I missing here?

[shayonce]

Taylor Swift is planning a TikTok marketing campaign for “The Tortured Poets Department” album launch—even as her label and the platform remain in a stalemate over royalties

At a recent meeting with record label executives ahead of the debut of “The Tortured Poets Department,” Swift’s camp shared plans to promote the new album on platforms including TikTok, according to people familiar with the matter. Label executives were surprised.

“Universal can’t claim they’re winning a fight Taylor doesn’t want a part of,”said Bill Werde, “The fact that this all-powerful artist who has this track record of fighting for artists is saying, ‘No, I want to be back on the platform,’ it’s very damning to Universal’s argument,"

Universal has presented its battle with TikTok as existential to artists and one that will shape the future of the music business. Several artists, industry and independent music organizations have come out in public support of Universal’s stances

Swift’s departure from her label has surprised some industry observers.

Before going public in January with a letter telling artists it would be removing their music from TikTok, Universal made managers for some of its top acts—including Swift—aware of its plansaying out why..

Universal asked Swift’s camp to reconsider. Over more than a week of discussions, the label reiterated its position, laying out why it was holding firm on its stance, why it felt it was important for the industry and what is at stake. Swift’s camp didn’t budge. Neither did Universal. The star didn’t need permission to return to TikTok. Acts of her stature have more flexible deals, and Swift’s agreement with Universal allowed her to strike a direct agreement with TikTok.

[Dylan :)]

Agreement reached

[Ling-Ling]

It's definitely good for UMG artists, but kind of a bummer tbh. I feel like lessor known artists were really getting a chance to shine there for a second.

[Baby Spice]

I was just thinking (before learning about the agreement being reached) that this may have actually been a good thing because majors have become so reliant on TikTok as the marketing strategy, and that forcing them to get creative again with marketing could be positive in the end. But I'm happy for the UMG artists that aren't Taylor level fame. It's a difficult situation for artists when majorb labels have been putting all their eggs in this one basket.