After a series of disagreements over artists’ rights, TikTok, the social media platform known for trendy songs accompanying short-form videos has gone silent. Universal Music Group, one of the largest music corporations in the world, has terminated their licensing agreement with TikTok, muting all associated music on the app.
This isn’t the first time that the two have disagreed. TikTok actually initiated steps to remove UMG’s music off of the platform when they decided not to pay the amount requested prior to the contract’s expiration. Ultimately, UMG’s decision to terminate their agreement with TikTok was justified in a variety of ways.
Compared to other popular social media platforms, TikTok was not paying nearly enough to compensate UMG artists. Last year, according to Music Business Worldwide, Tiktok paid an estimated $110 million to UMG, while Meta paid around $200-300 million in compensation. On the other hand, Youtube paid a staggering $6 billion in royalties and ad revenues to UMG.
Although TikTok is an incredibly successful app with over one billion users, UMG is not obligated to endure its lackluster pay, especially considering their size and title as the “world-leader in music-based entertainment.” As a major player in the industry, UMG has the leverage to demand fair compensation for the use of their artists’ work, ensuring that their contributions to TikTok’s success are appropriately recognized and compensated.
Moreover, fair compensation not only benefits UMG but also supports the entire musical industry, including artists, songwriters, and other industry professionals who rely on royalties for their livelihoods. Additionally, UMG’s decision to stand firm on fair compensation sets an important precedent for other labels and digital platforms, highlighting the importance of valuing music and their respective artists.
Though TikTok has undoubtedly boosted the popularity of numerous artists under UMG, the company must prioritize fair compensation for artists in order to uphold the integrity and sustainability of the music community on the app. Had TikTok just proposed a reasonable agreement, this whole situation could have been avoided.
