What Could be the Endgame of the Universal Music and TikTok Row?

TikTok faces the potential removal of millions of songs following allegations from Universal Music Group (UMG), the world’s largest music company. UMG accuses the social media platform of coercing it into an unjust deal.

The facts

In an open letter on Tuesday, January 30, Universal Music Group blew an alarm over what it terms as a ‘time out’ on entertainment platform, TikTok.

The music giant asserted that TikTok attempted to pressure and intimidate it into accepting an offer that compensates artists and songwriters at a significantly lower rate than other platforms.

In a newsletter titled “An Open Letter to the Artist and Songwriter Community: Why We Must Call Time Out on TikTok,” UMG shared that TikTok is trying to build a music-based business, without paying fair value for the music.”

The arguments

UMG’s contract with TikTok ends on Wednesday, January 31. Its current position of walking away from TikTok could result in users losing access to a vast array of songs by renowned artists like Taylor Swift through the app.

UMG also explained that the move by TikTok to use songs of its artistes and songwriters almost freely could cause great harm to its artistes and they wouldn’t allow that.

“We recognise 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,” the letter reads.

UMG also alleges that TikTok facilitates replacing artists with AI-generated content by inundating the platform with such recordings and encouraging users to engage in AI music creation.

However, in a sharp rebuttal, TikTok responded that the rants from UMG are only self-serving and not a fight for artistes and songwriters like the music group is claiming.

“It is sad and disappointing that Universal Music Group has put their own greed above the interests of their artists and songwriters.

“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’s statement reads.

Meanwhile, in a case where UMG and TikTok do not reach a mutual agreement, TikTok may opt to remove Universal Music’s catalogue from its platform. This could happen gradually, with certain songs or artists being phased out over time.

The Chinese app may also resort to promoting independent artists or licensing music from other labels. This could provide an opportunity for lesser-known musicians to gain exposure and for TikTok to diversify its music library.

This could, however, result in a shift in the platform’s content and user preferences.