So, TikTok has lost its voice 🫢 Or at least its singing voice...
On 31 January 2024, in a shock to everyone, Universal Music Group published a scathing open letter announcing that from 1 February 2024, the record label's licencing agreement with TikTok would not be renewed and all Universal-owned and distributed music was soon scrubbed from the platform.
🎶 Why this is huge 🎶
Universal Music Group is the biggest record label in the US and the largest music company in the world
The company has a presence in over 60 territories and owns 50 record labels
The label owns/distributes 78 000 albums and over 1 million tracks
This is a massive blow to both artists who depend on the reach TikTok provides for their music and TikTok itself, which gained popularity due to its ability to record new content using popular music (remember the app's roots as Music.ly?)
🎶 Why it all fell apart 🎶
According to UMG's statement, negotiations fell apart as the two parties could not agree on the following points:
Compensation rates for artists' music used on the platform
The use of AI-generated recordings and the development of AI music creation tools on the platform
Artist infringement and safety on the platform
UMG also accuses TikTok of the following:
Proposing to pay artists a fraction of other social media platforms
Building a music-based business without paying fair value for the music
Sponsoring artist replacement by AI
Bullying the company into accepting their deal by selectively removing small artists' music from the platform
🎶 TikTok's Response 🎶
Soon after UMG published their letter, TikTok published their own, albeit much shorter, response to the situation
TikTok states that they have been able to reach artist-first agreements with every other label and publisher and accuses UMG of the following:
Placing their own greed above the interests of artists and songwriters
Developing a false narrative and rhetoric
Working against the best interests of artists, songwriters and fans
🎶 So, what now? 🎶
Well, considering that only the representatives of UMG and TikTok were in the room where it happened, the rest of us can only speculate who is right and wrong in this "he said, she said" situation.
As of writing this, UMG-owned tracks are still muted on the platform. Even Taylor Swift, who has publicly fought to own and control her music, has had several of her TikToks muted as her music was stripped off TikTok.
However, it is not the Taylor Swifts of the world who will feel the brunt of this blow. Many small artists came onto TikTok after the letter was published to express how blind-sighted they were by the news and their fear of the impact this may have on their careers.
🎶 The Future of TikTok as a platform? 🎶
Whether these two companies will come to an agreement, only time can tell. However, what will the impact be for TikTok and other platforms?
Well, my "For you" page on TikTok is still filled with content and it seems like lifestyle and commentary content is having its moment to shine. Fan edits of UMG artists' songs are also still available on the platform and many artists who are not affiliated with UMG have also taken the opportunity to share their music. My prediction is that this disagreement will have the following impact:
Instagram reels will have its moment as UMG-affiliated artists move their content onto the platform where their music is licensed.
TikTok may pivot its future strategy to rely on music less than before (this plan may already be in motion as its TikTok Music service proved to not be as successful as the company hoped)
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