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Due to collapsed contract negotiations between the social media platform and the music giant, TikTok users face a major setback as they can no longer create videos featuring songs from Universal Music Group (UMG) artists, including Taylor Swift, Jon Batiste, and boygenius.
Access Ended After Failed Negotiations:
TikTok’s access to Universal’s extensive artist roster was terminated after months of unsuccessful negotiations, marking a significant development in the ongoing relationship between the popular platform and the world’s largest music company. TikTok has started muting short videos featuring UMG artists due to the breakdown in talks.
Universal Music Group attributed the termination to TikTok’s unwillingness to appropriately compensate artists and songwriters, protect artists from the negative effects of artificial intelligence (AI), and address online safety concerns for users. The label advocates for TikTok to provide compensation rates comparable to other social media platforms.
TikTok’s Response and Accusations:
In response, TikTok accused Universal Music of prioritizing greed over the interests of artists and songwriters.
The social video platform emphasized its artist-friendly agreements with other labels and publishers and highlighted Universal’s departure from a powerful promotional platform with over a billion users.
Concerns Over AI-Generated Content and Online Safety:
Universal Music raised concerns about TikTok allowing the platform to be inundated with AI-generated recordings, diluting the royalty pool for artists.
The label also expressed worries about problematic content, citing instances such as sexualized images of Billie Eilish going viral. TikTok declined to comment on the allegations.
Taylor Swift’s Unavailable Music and User Reactions:
Taylor Swift’s TikTok account, boasting 23.9 million followers, displayed a notice stating that the music was unavailable.
This shocked users, particularly the younger demographic, who use these songs as background audio for various TikTok trends. Some users expressed disbelief and humorously suggested moving to Instagram Reels as an alternative.
Wall Street Analysts’ Views and Universal’s Bold Move:
Wall Street analysts, including J.P. Morgan’s Daniel Kerven, commended Universal Music’s decision, stating that the label had little to lose and much to gain.
The estimated financial impact on Universal was deemed manageable, and the move was seen as a strategic decision to protect artist compensation.
