Universal Music Group (UMG) has announced that it will no longer allow its music to be used on TikTok following the expiration of their licensing agreement. UMG represents a wide range of popular artists including Taylor Swift, Drake, Adele, Bad Bunny, and Billie Eilish. The decision comes after UMG stated that it had not agreed to the terms of a new deal with TikTok and expressed concerns about three key issues.

In a letter addressed to artists and songwriters, UMG outlined the pressing matters it had raised with TikTok. Firstly, UMG emphasized the need for appropriate compensation for their artists and songwriters. They claimed that TikTok proposed paying them a fraction of what other major social platforms offer, despite TikTok only contributing around 1% of UMG's total revenue. UMG accused TikTok of attempting to build a music-based business without paying fair value for the music.

Secondly, UMG expressed concerns about the potential harmful effects of artificial intelligence (AI) on human artists. They claimed that TikTok was developing tools to encourage AI music creation, which could potentially dilute the royalty pool for human artists. UMG accused TikTok of sponsoring artist replacement by AI, a move that they deemed unacceptable.

Lastly, UMG criticized TikTok for its handling of online safety issues. They claimed that TikTok's efforts to combat hate speech, bigotry, bullying, and harassment were insufficient. UMG argued that the process of removing troubling content from TikTok was cumbersome and inefficient, comparing it to a game of "Whack-a-Mole." They proposed that TikTok implement similar measures used by other social media platforms, but claimed that their suggestions were met with indifference and later intimidation.

TikTok, however, refuted UMG's claims and accused the music label of prioritizing their own greed over the interests of their artists and songwriters. They stated that they have reached “artist-first” agreements with every other label and publisher, suggesting that UMG's actions are self-serving.

The termination of the licensing agreement between UMG and TikTok marks a significant development in the ongoing relationship between music labels and social media platforms. It remains to be seen how this decision will impact both UMG's artists and TikTok's music-based business model.