Allen J. Schaben | Los Angeles Times | Getty Images
Universal Music Group stated on Wednesday that it’s going to stop licensing its music to TikTookay and accused the short-form video large of bullying and intimidation in its contract negotiations.
A music licensing settlement between UMG and TikTookay, which is owned by Chinese tech large ByteDance, expired on Wednesday, and new phrases haven’t been agreed. This implies that UMG might pull its music catalog from TikTookay.
UMG stated in an open letter printed on Wednesday that it has been “urgent” TikTookay throughout contract discussions on three points — “applicable compensation for our artists and songwriters, defending human artists from the dangerous results of AI, and on-line security for TikTookay’s customers.”
The music label, which represents megastars from Taylor Swift to Drake, stated that TikTookay proposed paying its artists and songwriters “at a price that’s a fraction of the price that equally located main social platforms pay.” UMG stated just one% of its complete income comes from TikTookay, regardless of the social community’s “huge and rising consumer base, quickly rising promoting income and growing reliance on music-based content material.”
UMG additionally alleged that TikTookay is permitting its platform to be “flooded with AI-generated recordings,” in addition to creating instruments to “allow, promote and encourage AI music creation.” According to UMG, TikTookay is “demanding a contractual proper which might enable this content material to massively dilute the royalty pool for human artists, in a transfer that’s nothing brief of sponsoring artist substitute by AI.”
The music business has been grappling with the rise of synthetic intelligence, which might generate music and even mimic the voices of big artists.
UMG additionally stated that TikTookay “makes little effort to take care of the huge quantities of content material on its platform that infringe” artists’ music.
The label firm accused TikTookay of bullying and intimidation ways in contract negotiations.
“When we proposed that TikTookay takes comparable steps as our different platform companions to strive to deal with these points, it responded first with indifference, after which with intimidation,” UMG stated.
“As our negotiations continued, TikTookay tried to bully us into accepting a deal value lower than the earlier deal, far lower than honest market worth and never reflective of their exponential development. How did it strive to intimidate us? By selectively eradicating the music of sure of our creating artists, whereas holding on the platform our audience-driving international stars.”
TikTookay responded to UMG’s allegations on Wednesday.
“It is unhappy and disappointing that Universal Music Group has put their very own greed above the pursuits of their artists and songwriters,” the firm stated in an announcement.
“Despite Universal’s false narrative and rhetoric, the truth is that they have chosen to stroll away from the highly effective help of a platform with effectively over a billion customers that serves as a free promotional and discovery car for his or her expertise.”
TikTookay stated it has been in a position to attain “artist-first agreements with each different label and writer.”
Last 12 months, the firm signed a music licensing take care of Warner Music Group.