A bold move took the newsstand earlier this year, in February when Universal Music Group (UMG) decided to remove all its music from the social media mega platform TikTok. UMG is one of three major music labels in the industry that signed the top four artists of 2023—Taylor Swift, Bad Bunny, The Weekend, Drake, and many more of our favorite artists; the termination of their licensing deals resulted in removing said artists' songs from TikTok.
Unless both parties can agree to compensate Universal Music Group, artists and songwriters support this decision as it addresses an ongoing challenge faced in the music industry regarding fair compensation. It brings awareness of the misrepresentation between music labels and top social media platforms.
For context, Universal Music Group made $10 Billion last year, but only %1 of that was generated from TikTok. Meanwhile, UMG artists represented 8 out of 10 of the most famous artists on TikTok last year. According to NBC News, 60% of videos include music on TikTok's platform.
On top of fair compensation, Universal Music Group added their concern about the growth of artificial intelligence (AI) tools integrated into TikTok audio. This addition allows creators to replicate trending audio/music, which leads to zero compensation to artists whose music is being manipulated. (mahdiwoodard)
A message from Fortune, "As our negotiations continued, 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 said. "How did it try to intimidate us? By selectively removing the music of developing artists while keeping our audience-driving global stars on the platform."
TikTok hasn't responded much except by saying that UMG is "putting their own greed above the interests of their artists and songwriters."
This dispute between UMG and TikTok is not abnormal but reflects the broader challenges within the music industry. The advent of streaming services and short-form social media content has revolutionized the way music is consumed, raising questions about fair compensation, copyright issues, and the balance of power between labels and platforms. Universal Music Group's actions send a powerful message to all social media platforms and raise questions about whether other music labels will file the same suit.
Universal Music Group's recent decision to remove its artists from TikTok creates a shift in social media. Rather than viewing this as a setback, we see it as an opportunity to harness the change and optimize our client's social media strategies to stay ahead in the ever-evolving digital landscape.
While music has been undeniably crucial for short-form video content and its exposure, it is time to broaden our horizons. At GOAT Social Media, we recognize the importance of diversification in content creation, including single posts, carousels, stories, and original audio. We can craft more engaging and versatile content and leverage social media's change.
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