Universal Music Group to Stop Licensing Music to TikTok As Negotiations for Artist Compensation and AI Safety Fail
Universal Music Group, which represents artists like Taylor Swift and Drake, announced it will cease licensing music to TikTok as its licensing agreement expired. UMG accused TikTok of bullying and intimidation tactics during contract negotiations, as well as failing to pay fair rates for music usage. It said TikTok pays 1% of its total revenue to music labels despite major growth. UMG is negotiating with TikTok for better artist and songwriter compensation, protection against AI's negative impact, and user online safety.
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00:00 It's Benzinga and here's what's on the block.
00:02 Universal Music Group, which represents artists like Taylor Swift and Drake,
00:06 announced it will cease licensing music to TikTok as its licensing agreement expired.
00:11 UMG accused TikTok of bullying and intimidation tactics during contract negotiations,
00:17 as well as failing to pay fair rates for music usage.
00:20 It said TikTok pays 1% of its total revenue to music labels despite major growth.
00:25 UMG is negotiating with TikTok for better artists and songwriter compensation,
00:29 protection against AI's negative impact, and user online safety.
00:33 Other issues UMG raised include TikTok allowing large volumes of AI-generated music
00:38 to dilute royalties for human artists and not adequately addressing copyright-infringing content.
00:43 The expiration means UMG could now pull its entire music catalog from the short video platform.
00:48 For all things money, visit Benzinga.com
00:51 (upbeat music)