Universal Music Accuses TikTok Of Bullying, Will Not Renew Contract

Universal Music Group (UMG), one of the largest music labels globally, has made the decision not to renew its contract with the social media giant TikTok. The contract is set to expire today, January 31, 2024. In response, Universal Music Group has written an open letter to artists and consumers worldwide, outlining the process of renegotiating the contract with TikTok. The letter accuses TikTok of employing bullying tactics, allegedly attempting to strong-arm a new contract that offers lower compensation to artists represented by Universal Music Group. It also highlights TikTok's indifference towards artist remuneration and its promotion of AI-based tools that could potentially reduce the income pool for musicians.

In a statement, the company said, "The companies have not reached an agreement on new terms, and once the current agreement expires, Universal Music Group, including Universal Music Publishing Group, will cease licensing content to TikTok and TikTok Music services."

Consequently, any music from artists represented by Universal Music Group will no longer be available on the TikTok app. Universal Music Group represents renowned acts such as Taylor Swift, Sting, The Weeknd, Alicia Keys, Drake, SZA, Billie Eilish, Kendrick Lamar, Harry Styles, Ariana Grande, Justin Bieber, Adele, U2, Elton John, Pearl Jam, Coldplay, Bob Dylan, and Post Malone. Indian acts represented by Universal Music Group include Armaan Malik, Anuv Jain, DJ Chetas, Lost Stories, Lisa Mishra, OAFF, MC Stan, Zaeden.

However, this development is not significant for Indian users, as TikTok has been banned in India since June 2020 due to China's encroachment on India's border in the Galwan region. TikTok is owned by the Chinese tech giant ByteDance and has faced issues in the United States as well.

In response to Universal Music Group's decision, TikTok stated, "It is sad and disappointing that Universal Music Group has prioritised their own greed over the interests of their artists and songwriters. Despite Universal's false narrative and rhetoric, the fact remains that they have chosen to walk away from a platform with over a billion users, which serves as a free promotional and discovery tool for their talent. TikTok has successfully reached 'artist-first' agreements with every other label and publisher. Clearly, Universal's self-serving actions do not align with the best interests of artists, songwriters, and fans."

Universal Music Group had mentioned in their open letter that they had been addressing three critical issues during negotiations: appropriate compensation for their artists and songwriters, protecting human artists from the adverse effects of AI, and ensuring online safety for TikTok's users.

Universal Music Group claims that TikTok offered to pay only a fraction of the compensation provided by other social networking applications, referencing what Meta-owned Instagram and Facebook have offered. UMG alleges that TikTok has done little to prevent a significant amount of content on its platform that infringes on its artists' music. As part of the negotiations, TikTok allegedly removed the music of some lesser-known acts represented by UMG, negatively impacting their chances of growth or going viral.

"TikTok's tactics are evident: utilising its platform power to harm vulnerable artists and attempting to intimidate us into accepting an unfavourable deal that undervalues music and shortchanges artists, songwriters, and their fans," UMG stated. "We will never succumb to that. We will always advocate for our artists and songwriters and defend the creative and commercial value of music," they added.