BSS
  31 Jan 2024, 14:13

Universal Music warns it will pull songs from TikTok

WASHINGTON, Jan 31, 2024 (BSS/AFP) - Universal Music Group warned Tuesday

that it would pull its songs from TikTok, after a breakdown in talks with the
social media platform over issues including the compensation of artists and
songwriters.

In an open letter, Universal accused TikTok of "trying to build a music-based
business, without paying fair value for the music."

Both sides have been discussing the terms of a new agreement, with their
existing contract set to expire on Wednesday.

But their deal has not been renewed.

Among the issues raised in talks were "appropriate compensation" for artists
and songwriters, online safety for users, as well as the protection of
artists from the harms of artificial intelligence, the letter added.

But as negotiations proceeded, Universal said, "TikTok attempted to bully us
into accepting a deal worth less than the previous deal, far less than fair
market value and not reflective of their exponential growth."

Major music companies earn royalty payments from streaming and social media
platforms.

Industry giant Universal said, however, that TikTok proposed paying "a rate
that is a fraction of the rate that similarly situated major social platforms
pay."

Despite TikTok's large user base, it accounts for just about one percent of
Universal's total revenue, the company added.

Universal noted other problems such as large amounts of AI-generated
recordings on the platform, alongside what it called a lack of effort to deal
with infringements on artists' music.

Artists on Universal's labels include Taylor Swift and The Weeknd.

Owned by Chinese company ByteDance, TikTok is one of the most popular social
media platforms globally, with more than one billion users.

 

 

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