In a bold move that underscores the mounting tension between the music industry and social media giants, Universal Music Group (UMG) has issued an open letter to the artist and songwriter community, calling for a “time out” on TikTok. The letter, dated January 30, 2024, outlines Universal Music’s concerns over TikTok’s practices, including compensation issues, the impact of AI on human artists, and the platform’s approach to online safety.
Universal Music’s relationship with TikTok, described as an “increasingly influential platform,” has reached a critical juncture. The record label’s contract with TikTok, set to expire on January 31, 2024, has been under renegotiation, focusing on three pivotal issues: fair compensation for artists and songwriters, protection against the adverse effects of AI on human creativity, and the safety of TikTok’s user base.
Compensation Concerns:
Universal Music criticizes TikTok for offering compensation that falls significantly below the market rate, despite TikTok’s “massive and growing user base” and “rapidly rising advertising revenue.” TikTok’s proposed rates are described as a fraction of what other major social platforms pay, contributing to only about 1% of Universal Music’s total revenue. This discrepancy is highlighted as evidence of TikTok’s attempt to build a music-based business “without paying fair value for the music.”
The AI Dilemma:
Another major concern raised by Universal Music is the proliferation of AI-generated content on TikTok. The platform is accused of not only allowing but also promoting AI music creation, potentially diluting the royalty pool and replacing human artists with AI-generated content. This move is characterized as a threat to human creativity and the livelihood of artists and songwriters.
Online Safety and Content Moderation:
Universal Music also takes issue with TikTok’s content moderation practices, pointing out the platform’s failure to address copyright infringement, content adjacency issues, and the spread of harmful content such as hate speech and harassment. The cumbersome process for removing infringing or problematic content is likened to a digital “Whack-a-Mole,” with TikTok showing “indifference” and then “intimidation” when pressed to address these concerns.
Negotiation Tactics and the Path Forward:
The letter describes TikTok’s negotiation tactics as attempts to “bully” Universal Music into accepting an unfavorable deal. TikTok’s selective removal of music from developing artists, while retaining tracks from globally recognized stars, is cited as a clear tactic to pressure Universal Music into submission. Despite these challenges, Universal Music affirms its commitment to fighting for fair compensation and a safe, respectful platform for artists, songwriters, and fans alike.
Universal Music’s open letter is a rallying cry for the music industry to stand firm against practices that undervalue music and compromise artist rights. As negotiations with TikTok continue, the outcome of this dispute will undoubtedly have far-reaching implications for the relationship between music labels, artists, and social media platforms in the digital age.
