UMG's Dispute with TikTok

This piece originally appeared on February 15, 2024 in Sound Signal, our biweekly newsletter that identifies emerging artists, scenes, and trending tracks, crafted by the world's best writers and curators. Sign up here to never miss our take on what's next in music.

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After failing to agree on a new licensing deal, Universal Music Group and TikTok entered a standoff, resulting in UMG blocking all audio made by its artists from the ByteDance-owned app on February 1. The impact was immediately felt; more than one-third of the songs on Billboard’s TikTok Top 50 chart—including hits by Muni Long, Xavi, Drake, and Lana Del Rey—are no longer available.

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This marks the first time UMG has pulled their entire catalog from a major tech platform. In an open letter shared on January 30, the company cited TikTok’s proposed low compensation rates, and lack of moderation of content that “infringe” artists’ music—especially audio generated by AI tools. “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,” UMG wrote. TikTok responded with a statement that accused UMG of putting “their own greed above the interests of their artists and songwriters,” while saying TikTok has been a “free promotional and discovery vehicle” for the label’s artists.

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If they can’t reach an agreement for another month, UMG will demand TikTok remove tracks with contributions from songwriters under its publishing arm—which would include tracks by Adele, Bad Bunny, and Harry Styles, Bloomberg notes.

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While critics and analysts have predicted that the top echelon of pop stars won’t be majorly affected, lesser-known UMG artists have become collateral in the dispute. Rising acts like Cody Fry and Wisp, who both got label attention through their TikTok following, have been unable to promote tracks that saw engagement right before the audio black-out.

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However the conflict is settled, it will require UMG to agree that TikTok is a vital platform for their artists, while TikTok will have to concede that they have more responsibilities to artists than they let on. “[TikTok] is becoming a form of music consumption in its own right, and one that competes more directly than ever with time spent streaming music,” music industry analyst Tatiana Cirisano writes for MIDiA Research. “It is becoming increasingly difficult for TikTok to claim that exposure is payment enough.”

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