UMG also accused TikTok of trying to intimidate them into accepting a deal worth less than fair market value. Despite TikTok's significant influence in the music industry, UMG claimed that the app accounts for only about 1% of their total revenue. The company stated that it will continue to fight for appropriate compensation for their artists and a safe, effectively moderated platform.
Key takeaways:
- Universal Music Group (UMG) is expected to pull its music, including Taylor Swift's, from TikTok on February 1 due to disagreements over compensation for artists and songwriters, protection against AI, and online safety.
- UMG accused TikTok of trying to build a music-based business without paying fair value for the music and of allowing the platform to be flooded with AI-generated recordings, which dilutes the royalty pool for human artists.
- TikTok has been a significant platform for developing artists and has a substantial influence in the music industry. However, UMG claims that TikTok accounts for only about 1% of their total revenue.
- TikTok's parent company, ByteDance, has filed a trademark application for 'TikTok Music', indicating that it may be positioning itself as a direct competitor to platforms like Spotify and Apple Music.