Universal Music Group threatens to pull its catalog from TikTok in furious open letter

In a sternly worded open letter, Universal Music Group (UMG) has issued a strong warning to TikTok, indicating its intention to potentially withdraw its song catalog from the platform. The letter emphasizes UMG’s primary mission of assisting artists and songwriters in reaching their full creative and commercial potential. The partnership between UMG and TikTok, like with other platforms, is rooted in a contractual agreement set to expire on January 31, 2024.

Critical Concerns: UMG’s Trifecta

UMG outlines three critical issues it has been pressing TikTok on during contract renewal discussions. These include fair compensation for artists and songwriters, protection against the negative impact of AI on human artists, and ensuring online safety for TikTok users. The letter highlights UMG’s efforts with other platform partners, such as the Artist-Centric initiative aimed at updating streaming remuneration models to better reward artists.

Pricing Predicament: TikTok Compensation Conundrum

UMG criticizes TikTok for proposing a compensation rate for artists and songwriters that is significantly lower than what other major social platforms offer. Despite TikTok’s massive user base and growing advertising revenue, it currently contributes only about 1% to UMG’s total revenue. UMG accuses TikTok of attempting to build a music-based business without adequately compensating artists, characterizing it as an effort to undervalue music.

AI Anxiety: UMG’s Stance Against Artist Replacement

The issue of AI-generated content on the platform is also raised, with UMG expressing concern about the platform’s allowance of AI-generated recordings and tools that encourage AI music creation. UMG argues that TikTok’s approach to AI risks diluting the royalty pool for human artists, essentially sponsoring the replacement of artists by AI.

Content Control: UMG’s Call for Responsibility

Additionally, UMG criticizes TikTok for its lack of effort in addressing content infringement and content adjacency issues on the platform. The letter accuses TikTok of offering no meaningful solutions to combat hate speech, bigotry, bullying, and harassment. UMG proposes that TikTok takes similar steps as other platform partners to address these issues, but TikTok responds with indifference and intimidation, according to UMG.

Intimidation Tactics: TikTok Coercive Moves

TikTok’s alleged intimidation tactics involve attempting to coerce UMG into accepting a deal worth less than the previous agreement, which UMG deems unfair and not reflective of TikTok’s exponential growth. Accusers claim that TikTok selectively removes the music of certain developing artists while retaining that of globally popular artists to influence UMG’s decision.

UMG’s Commitment: Defending Artists and Creativity

Despite acknowledging the challenges that TikTok’s actions may pose to its artists and fans, UMG asserts its commitment to fighting for a new agreement that appropriately compensates artists, respects human creativity, ensures a safe environment, and addresses its obligations as a social platform. The letter concludes with UMG’s firm stance against intimidation and its unwavering dedication to standing up for the creative and commercial value of music.