Universal Music Group, holder of the rights to Taylor Swift, is calling time on TikTok, removing its huge artist catalog from the app due to lack of compensation and AI concerns.
Universal Music Group’s Ultimatum

Universal Music Group hit out at the Chinese social media app TikTok, warning it would remove its extensive music catalog from the app due to royalty payments.
TikTok’s Enormous User Base at Stake

Over 1 billion TikTok users may lose access to songs by major artists whose music is essential for popular videos and trends.
TikTok’s 1% Not Enough

Universal admitted that TikTok only accounts for 1% of its revenue, suggesting that the protection of its artists is more important than a small percentage of income.
Universal’s Public Statement

Universal explained its reasoning for removing songs from artists from The Police to Taylor Swift, and everything in between through a letter called.
Calling Time on TikTok

The letter was titled, “An open letter to the artist and songwriter community — why we must call time out on TikTok.”
Music at TikTok’s Heart

The letter noted that TikTok execs “proudly” claim that “music is at the heart of the TikTok experience,” which Universal will now use to its advantage.
Expiring Licensing Agreement

One of the reasons that Universal Music Group (UMG) must remove their music is the license agreement, which was set to expire just 24 hours after the letter was released.
Fighting Against AI

UMG claims they have fought “aggressively” against the use of AI to “ensure artists’ rights and interests are protected,” this comes after shocking AI images of Taylor Swift were released on social media.
AI Breaking Contract Law

According to the letter, “TikTok is allowing the platform to be flooded with AI-generated recordings,” which is not compensated to the artists, going against the contract.
Universal’s Focus on Artist Compensation

One key focus of Universal’s negotiations is securing appropriate compensation for its artists and songwriters.
Failed Compensation

UMG and TikTok failed to reach an agreement on issues like artist compensation, as UMG accused the app of failing to provide “appropriate” compensation to its artists in the new deal.
TikTok’s Offer

TikTok allegedly proposed a payment that Universal described as a “fraction of the rate that similarly situated major social platforms pay.”
Global Catalog at Stake

Universal stressed the huge amounts of global sensations that TikTok has lost itself, including The Beatles, Bob Dylan, Elton John, Drake, Sting, the Weeknd, Kendrick Lamar, and Ariana Grande, to name a few.
TikTok’s Lack of Care for Artists

Universal claimed that “TikTok makes little effort” to acknowledge the music on its platform that breaches the rights of its artists.
No Solutions Promised

According to the letter, TikTok “offered no meaningful solutions” to reduce the amount of copyright issues before bringing up a serious matter.
Harassment Issues

TikTok has been accused of allowing a “tidal wave of hate speech, bigotry, bullying and harassment” on its platform that doesn’t show any sign of being stopped.
TikTok’s Accusations

TikTok accused Universal of spinning a “false narrative and rhetoric” while promoting “their own greed above the interests of their artists and songwriters.”
Accusations of Walking Away

TikTok claims Universal has chosen to “walk away” from the hugely popular app, which it claims promotes Universal’s artists to the world for free.
TikTok’s “Artist-First” Agreements

TikTok defends its stance, stating it has “artist-first” agreements with “every other label and publisher,” implying that Universal’s concerns are unique.
The Future is Uncertain

As Universal-owned music on TikTok comes to an end, it’s interesting to see how this would affect the popularity of the app that claims music is at its heart.
More From Frugal to Free…
U.S. Budget Breakthrough: A Huge Step Forward Amidst Looming Shutdown Threat
Will Easing Inflation in America Continue?
The post Universal Acts Against Fake AI Music, Pulls Taylor Swift’s Music from TikTok first appeared on From Frugal to Free.
Featured Image Credit: Shutterstock / Featureflash Photo Agency.
The content of this article is for informational purposes only and does not constitute or replace professional financial advice.