Capitalism in Music: The Clock is Ticking on TikTok.
Is Universal Music Group Being a Bully? Is this the crack that breaks the music industry's back?
It’s January 31, 2024. The last day of the first month of the year. It’s been 30 days since you’ve received an email from me. Welcome back baby!
I’ve been making some moves, master planning and scheduling some big things. After a recent photo shoot, I’ve secured some amazing opportunities. To be announced soon!
I’m excited to launch an upcoming behind the music video/docu-series segment entitled “Behind the House.”
Think VH1 “Behind the Music” vibes. I can’t wait to announce the artists who will be featured once a month on this platform.
On another note, January isn’t ending without some drama in the music industry.
Wtf is going on?
Early this [Wednesday] morning, Universal Music Group (UMG) released what they called"An Open Letter to the Artist And Songwriter Community – Why We Must Call Time Out On TikTok." Not only does the letter seem to be targeted at music artists, but also music fans and techies.
The deal between Universal Music Group and TikTok is about to end in the next 24 hours. The two giants couldn't agree on things like how much artists should be paid and how AI is used. This means that some of the most popular songs by our favorite artists (and maybe some of your own 🤔) will no longer be available on TikTok.
UMG is the world’s largest music company, accused TikTok of trying to “bully” and “intimidate” them into agreeing to a deal that is much lower than the previous one. UMG believes the proposed deal doesn't fairly represent the market value and doesn't acknowledge their significant growth.
TikTok allows users to make short-form videos also known as user-generated content (UGC), most of which are soundtracked with sound effects and licensed music.
If UMG doesn't come to an agreement with TikTok, all its songs will be taken off the platform when the current deal ends today.
UMG claimed in their public letter that TikTok contributes only around 1% of their total earnings. They argue this demonstrates how little TikTok pays artists and songwriters, despite its large and growing user base, increasing advertising revenue, and reliance on music content.
During negotiations for a new deal, UMG alleges that TikTok suggested paying their artists and songwriters a rate much lower than what other major social platforms offer for similar content.
Here’s what TikTok had to say about that: ( ⬅️ Click to read more)
“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,” the company said.
UMG accused TikTok of letting their platform get filled with AI-generated music.
TikTok's tools for AI music creation, according to UMG, contribute to replacing artists with AI. UMG complained that the process to remove unauthorized content on TikTok is difficult and inefficient, comparing it to a digital version of the Whac-a-Mole game.
TikTok has similar deals with other music companies like Sony and Warner Music, but it's unclear if they share UMG's concerns.
Final words:
"UMG is kind of taking the nuclear option of removing all their music and trying to prove ... that TikTok couldn't exist if it didn't have their catalog," says Tatiana Cirisano, a music industry analyst.
"TikTok has been able to reach 'artist-first' agreements with every other label and publisher," it says. "Clearly, Universal's self-serving actions are not in the best interests of artists, songwriters and fans."