Sounds Like Silence: Universal VS TikTok

In a surprising move that sent shockwaves through the music industry, universal music group (UMG), one of the largest and most influential labels in the world, has decided to remove its entire music catalog from TikTok. the decision comes as a response to what UMG claims is an inadequate compensation structure from the overly popular app TikTok.

by Peter Hoskins business reporter

This move by Universal Music group Means that artist like Taylor Swift, Drake, The weekend, Billie eilish, Olivia Rodrigo and many others will no longer be available on the billion dollar platform starting from 1st February 2024.

 

universal stated that " TikTok was bullying them" and claimed that TikTok wanted to pay a "fraction" of the rate of other social media sites in order to have access to their vast catalogue. in response TikTok said universal was presenting a " false narrative and rhetoric"

The current discord between TikTok and Universal Music Group (UMG) centers around royalty payments, a critical revenue stream for music companies when their songs are played on various platforms, including streaming services. Despite TikTok's colossal user base of over one billion, UMG contends that the platform contributes a mere 1% to its overall revenue. This discrepancy in financial impact has led to UMG's decision to remove its entire music catalog from TikTok.

while speaking to their artist and songwriters UMG said, "open letter to the artist and songwriter community". it also claimed that "ultimately TikTok is trying to build a music based business, without paying fair value for the music."

Universal also said that along with pushing for "appropriate compensation for our artists and songwriters", it was also concerned about "protecting human artists from the harmful effects of AI, and online safety for TikTok's users."

Universal Music Group then made the announcement that from 1st February 2024 all the music produced by their artist would be completely removed. in response TikTok claimed that "It is sad and disappointing that Universal Music Group has put their own greed above the interests of their artists and songwriters."

TikTok also released a statement saying "despite Universal's false narrative and rhetoric, 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."

This is the first time ever Universal Music Group has removed its music from a large platform this will devastate TikTok as Universal holds a dominant position in the global recorded music industry. It holds the rights to a huge array of artists from the Beatles and the Rolling Stones to Elton John and Ariana Grande.

In July of the previous year, Warner Music, the world's third largest recorded music company, and TikTok reached a significant licensing agreement, showcasing an ongoing effort to establish fair terms. TikTok still remains strong due to their partnership with Warner Music but this news of a spilt from Universal still Devastates millions on TikTok and they hope for a way forward for the two companies.