TikTok Accuses Universal Music Group of Greed Amid Threat to Pull Songs Over Contract Dispute | WhatsOnRap

WhatsOnRap StaffJanuary 31, 2024Last Updated: January 31, 2024

2 minutes read

UMG-TikTok Rift: Clash Over AI and Artist Pay Disrupts Music Licensing Deal

Drake, SZA, Nicki Minaj, And Others Face TikTok Removal Amid Universal Music Group’s Greed Claims

Universal Music Group (UMG), a major player in the music industry, recently announced the breakdown of negotiations for renewing its licensing agreement with TikTok.

The primary reasons cited for this failure were disagreements surrounding artist compensation and the utilization of artificial intelligence (AI). With the existing deal scheduled to conclude on January 31, UMG will cease to provide content licensing to TikTok and its associated services.

UMG boasts an impressive array of artists, including renowned names like Drake, The Weeknd, Alicia Keys, SZA, Steve Lacy, Nicki Minaj, Kendrick Lamar, Lil Baby, Quavo, and City Girls.

In an official statement, UMG outlined three crucial issues that became focal points during contract renewal discussions: ensuring fair compensation for artists and songwriters, safeguarding artists from the potential adverse effects of AI, and enhancing online safety for TikTok users.

TikTok faced criticism from UMG for what the latter perceives as a lack of meaningful solutions to content adjacency issues, as well as challenges related to hate speech, bigotry, bullying, and harassment on the platform.

UMG expressed dissatisfaction with TikTok’s proposed payment rates for musicians and songwriters, deeming them significantly lower than those offered by competing platforms like Instagram, YouTube, and Facebook. The company also voiced concerns about the potential impact of AI-generated content on diminishing royalties for human artists.

In response, TikTok accused UMG of prioritizing greed and forsaking a platform with over a billion users, which serves as a crucial promotional and discovery tool for emerging talent.

The fact is they have chosen to walk away from the powerful support of a platform with well over a billion users that serves as a free promotional and discovery vehicle for their talent.
”
– TikTok

UMG’s Contract Dispute Sparks TikTok Outcry Against Corporate Greed:

TikTok issues statement regarding Universal Music Group’s plans to pull its artists’ music from the platform following a breakdown in talks over payments:

“The fact is they have chosen to walk away from the powerful support of a platform with well over a billion users that… pic.twitter.com/xMipsFW5Fm

— Pop Crave (@PopCrave) January 31, 2024

TikTok maintained that it has successfully negotiated “artist-first” agreements with other labels and publishers, arguing that UMG’s actions are not aligned with the best interests of musicians, songwriters, and fans.

The dispute raises uncertainties about the availability of music from top-tier artists on the TikTok platform.

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