TikTok Faces Potential Loss of Taylor Swift and Ice Spice as Universal Music Group Threatens to Pull Catalog

Universal Music Group (UMG) Rejects Licensing Deal with TikTok

Universal Music Group (UMG), the label behind renowned artists like Taylor Swift and Ice Spice, has announced its intention to remove their catalogs from TikTok unless the platform agrees to better compensation for musicians and enhanced protections from artificial intelligence (AI) technology. UMG's current contract with TikTok is set to expire on Wednesday, and there have been no agreements reached on the key issues raised by UMG.

UMG Calls for Fair Compensation and Artist Protection

In an open letter, UMG acknowledges TikTok's significant influence and massive user base but emphasizes the need for a better licensing deal. UMG has been pushing TikTok to address three critical issues in their contract renewal discussions: appropriate compensation for artists and songwriters, safeguarding human artists from the potential harm of AI, and ensuring online safety for TikTok users.

UMG Accuses TikTok of Underpaying Artists and Promoting AI Music

UMG accuses TikTok of offering significantly lower compensation rates compared to other platforms for music licensing. Additionally, UMG raises concerns about TikTok's promotion of AI-generated music. The platform is currently testing a feature that allows users to create their own songs using AI technology.

Potential Consequences for TikTok

If UMG follows through with its plan to remove its song catalog from TikTok, it could have a substantial impact on the platform. TikTok heavily relies on sounds and music as part of its user experience, and UMG represents numerous popular artists, including Drake, Olivia Rodrigo, Beyonce, and Doja Cat. Some of TikTok's most viral sounds from the past year belong to UMG's catalog.

TikTok Responds to UMG's Claims

TikTok has responded to UMG's allegations, stating that despite Universal's narrative, they have chosen to walk away from a platform with over a billion users that serves as a free promotional and discovery vehicle for their talent. TikTok accuses UMG of prioritizing their own greed over the interests of artists and songwriters. The platform highlights that it has been able to reach "artist-first" agreements with other labels and publishers, emphasizing that UMG's actions are not in the best interests of artists, songwriters, and fans.

Additional Challenges for TikTok CEO Shou Zi Chew

Aside from the dispute with UMG, TikTok CEO Shou Zi Chew also faces a US Senate hearing on Wednesday regarding online child safety. This is not the first time Chew has faced scrutiny from Congress, as he previously addressed concerns about TikTok's content moderation policies and ties to China in a hearing held in March.

Source: Business Insider

—————————————————————————————————————————————
By: hgetahun@insider.com (Hannah Getahun,Kwan Wei Kevin Tan)
Title: TikTok Faces Potential Loss of Taylor Swift and Ice Spice as Universal Music Group Threatens to Pull Catalog
Sourced From: www.businessinsider.com/uinversal-music-group-tiktok-contract-taylor-swift-2024-1
Published Date: Wed, 31 Jan 2024 05:17:26 +0000