On Jan. 31, 2024, Universal Music Group and TikTok decided not to renew their contract, resulting in the removal of many artists from the platform.
UMG is one of the top music companies in the world, representing artists such as BTS, Drake and Taylor Swift. Similarly, TikTok is a massive social media platform available in over 160 countries with 1.1 billion users.
A key feature that attracts users to TikTok is its audio library, where creators can select their favorite song and use it as the background for their content. With the termination of the contract, TikTok users can no longer use music from UMG in their content.
According to a statement issued by UMG, the company claims that until the contract was broken, TikTok was paying songwriters and artists “…a fraction of the rate that similarly suited major social media platforms pay” and as a result, “…TikTok accounts for only 1% of our total revenue.”
UMG has also expressed concerns regarding content adjacency on TikTok’s platform, where content is intentionally placed or shown next to offensive material. Content adjacency can lead to confusion, offense, or anger among users, who may wrongly assume that the artist posted it. This can ultimately result in adverse reactions towards the artist, potentially leading to a backlash against them.
Along with content adjacency, UMG explains that TikTok allows many artificial intelligence song recordings to flood the app. UMG predicts that encouraging the use of artificial intelligence will “… massively dilute the royalty pool for human artists, in a move that is nothing short of sponsoring artist replacement by AI.”
In 2023, an anonymous music producer named Ghostwriter became popular on TikTok for their song “Heart On My Sleeve.” Ghostwriter used AI to extract the voices of artists The Weeknd and Drake and create an entirely new song, which they posted on TikTok. This song gained over 9 million views across TikTok and Spotify.
Colton Flurry, an independent artist from Simi Valley, promotes his music on TikTok by posting short-form content that gives the audience a taste of his songs with the hope of gaining their support.
“I see both sides,” said Flurry. “With Drake being signed to UMG, Ghostwriter’s song was probably one of the first major points of reference that was concerning for UMG. Whether it’s deepfakes, remixes or using a sample of a song, the label doesn’t have the ability to accurately collect royalties.”
In a statement released by TikTok, the company refutes UMG’s concerns by stating that TikTok is a “…platform with well over a billion users that serves as a free promotional discovery vehicle for their talent.”
Thanks to TikTok’s algorithm, content can quickly go viral. A prime example is the meteoric rise of TikTok star Bella Poarch, whose career took off thanks to the app. Poarch’s popularity on TikTok led to her signing with Warner Records and becoming an incredibly successful artist with worldwide exposure.
Moorpark College business professor Felix Masci shared his thoughts on UMG’s decision.
“It is possible that UMG thinks that TikTok cannot survive without their music and they have to give in,” Masci said. “Is it a wise move? I don’t think so. UMG is running the risk of looking like the greedy corporate giant. Being that all the other major production companies have an agreement with TikTok, UMG looks like the aggressor,” said Masci.
TikTok clarified that they have no issues with other labels or publishers they work with and insisted that “…Universal’s self-serving actions are not in the best interests of artists, songwriters, and fans.”
“I’m interested to see what Sony and Warner Music do,” said Flurry
Although TikTok users can still use songs from Sony Music and Warner Music Group in their content, the loss of UMG’s partnership will significantly impact the app.
