Universal X TikTok: Why does the world’s largest record label want its music removed from social networks?

The company announced last week that it did not have a deal with the platform and has already begun removing songs from artists like Taylor Swift and Anitta. The “fight” represents the consequences for both sides

A Universal musicthe largest record label in the world, surprised last week by announcing its withdrawal songs with your seal of Tick ​​tock. The company’s catalog includes big names in international music, such as Taylor Swift AND The weekendand also from Brazil, like Anita AND John.

In justification, the record company claimed that it had no agreements with the platform regarding artist compensation, the use of artificial intelligence on the social network and online security on TikTok. OR Estadao contacted Universal Music for a new placement, but received no response. The space remains open. More information on the open letter that informed the company’s decision is below.

The social network also responded with a public note accusing the record label of “putting its own ambitions above the interests of its artists and composers” and stating that the platform is “a free means to promote and discover their talents”. The report contacted TikTok for a position, which responded with the statement already released. Read more from him below.

The exclusions began last Thursday, the 1st, the day that marked the end of the record company’s contract with TikTok, and had strong repercussions in the international press. OR New York Times He went so far as to categorize the songs’ absence “as if Madonna deleted a clip from MTV in the ’80s?”

The announcement represents a fight for artists to pay for songs and promote songs. The change could also be felt negatively for the network, which has music as its cornerstone. OR Estadao spoke to experts in copyright and music distribution to clarify the impact and what should change for singers, songwriters and the platform from now on.

TikTok is not Spotify

To begin to understand how artists are paid on TikTok, you need to understand that, despite containing music, the network does not work the same way as streaming platforms like Spotify, Deezer and Apple Music. Daniel Campello, a copyright lawyer with a doctorate on music platforms, explains that, according to copyright law in Brazil, the payment is proportional to the importance of the music to the user.

According to him, compensation for streaming began to be conceived with the advent of iTunes. “Steve Jobs was personally involved in the issue of iTunes pricing. Then the record companies ended up forcing them to be partners with platforms like Spotify,” he says.

The lawyer underlines that, despite being an important point for TikTok, music played online does not pay the same amount as other streaming platforms. “Music consumption is very important for the platform, but the compensation will definitely not be at the same level [do que o Spotify, por exemplo]in accordance with copyright laws in Brazil and around the world,” he comments.

Producer Vitor Cunha, CEO of independent distributor Magroove, points out that the value depends on negotiations between each platform and the record label. “Values ​​can be different even between similar products like Spotify, Deezer and Apple Music. Each has a different remuneration scheme that needs to be taken into account when making a catalog available,” he says.

He explains that TikTok, unlike streaming platforms, acts more like “a discovery channel.” “If we were talking about a streaming platform, like Spotify, [o anúncio da exclusão] it would be much more problematic. […] [O TikTok] This is not a significant revenue channel for the artist and the record company,” he assesses.

Do artists depend on TikTok to promote music?

While Universal Music based the decision on the platform’s compensation, TikTok responded by claiming it was “a free means to promote and discover your talent.” The statement divides experts: while Daniel Campello sees a loss in the diffusion of songs, Vitor Cunha believes that the music scene is more “pulverized”.

The lawyer gives as an example Anitta, who recently signed a contract with the record company. In 2022, the singer made history by becoming the first Latin artist to reach the Top 1 on Spotify Global. She achieved the feat with Involvea song that had a “little help” from a dance challenge created on TikTok.

For him the singer’s style, funk, must be one of the most affected by the change. “How will the release of a song like that survive without TikTok?” he asks.

Cunha instead believes that the role of the video network can be played by other social networks. The producer estimates that the Internet today really has the same impact on the distribution of music as MTV had in the 1980s, but says that the music market “is more fragmented”.

“The promotion happens on TikTok, but also on Instagram, YouTube, Facebook, Twitter,” he says. “The platform is an important channel, but certainly not as hegemonic as MTV in the 1980s.”

The announcement has also divided the artists from the label itself. Singer Yungblud, who performed in Brazil in 2023 during Lollapalooza, was harsh and rated the change as “idiotic”. “It’s the same old shit: two big companies deciding what happens to people’s art. […] Everything can be removed with the push of a button. Ultimately, it’s a great reminder to me and other artists that the things you create shouldn’t be ‘debted’ to big tech companies,” she said in a TikTok video.

@yungblud

thoughts?

original sound – yungblud

Producer Metro Boomin highlighted the impact the network has on the composition of new releases. “I love the creativity and appreciation kids show for music on TikTok, but I don’t like the forced pandering of artists and record labels that results in these lifeless, soulless records,” he wrote in a post on X, formerly Twitter.

I love the creativity and appreciation kids show for music on TikTok, but I don’t like the forced pandering by artists and labels that results in these lifeless, soulless records.

— Metro Boomin (@MetroBoomin) January 31, 2024

Will other labels make the same decision?

Cunha says there is no way to predict the behavior of other record companies after Universal Music’s decision. He, however, believes the change “certainly opens up a discussion in the industry and could raise alarm for other social networks.”

Campello believes the exclusion will only affect Universal, but he also believes it will open up discussions in the music market. The lawyer underlines that music “is undervalued compared to its value in the world”, but specifies that with the advent of the internet the business model has changed.

“The role of copyright is to pay the creators, the artists, to give them a living,” he points out. “Now, when there is a disruptive frontier that completely changes the business model, I think the parties need to be more understanding.”

He cites the emergence of Spotify and negotiations between record companies and streaming services as an example. “Imagine if the music market had decided, a long time ago, that record companies wouldn’t partner with Spotify and that there would be no Spotify. We wouldn’t have the music industry,” he says.

According to Campello, the music market is made up of “80%, 90% streaming”, which has completely changed the pricing matrix. “If you used to pay 20 dollars for a record, today you pay 2 dollars for it [acesso a] millions of songs,” he comments.

What Universal Music says

In an open letter published on the 30th, Universal Music wrote that the label’s primary goal is “to help our artists and songwriters reach their maximum creative and commercial potential” through partnerships. Among the company’s partners is TikTok, which, the note reads, has built its success “largely on the basis of the music created by our artists and composers”.

“Its senior executives proudly state publicly that ‘music is at the heart of the TikTok experience,’ and our analysis confirms that the majority of TikTok content contains music, more than any other major social platform,” he continued.

To renew its contract with the social network, the record label said it needed “adequate compensation for artists”, “protection of artists against the harmful effects of artificial intelligence” and “online safety for TikTok users “. Conversations between the companies, however, did not reach agreements deemed satisfactory to Universal Music.

“With respect to the issue of artist and songwriter compensation, TikTok has proposed to pay our artists and songwriters a fee that is a fraction of the fee paid by major social platforms under similar conditions,” he said. According to the note, the video network represents only 1% of the record company’s total revenue.

Subsequently, Universal accused the platform of trying to “build a business based on music, without paying fair value for music”, as well as making no effort to stop the growth of AI-generated content. The company also criticized the network’s stance on hate speech, intolerance and harassment.

“As our negotiations continued, TikTok attempted to intimidate us into accepting a deal that was worth less than the previous one, much less than fair market value and did not reflect its exponential growth,” he said. The record label accused the platform of trying to intimidate it by removing songs from “developing artists” after it attempted to reach a settlement.

Universal acknowledged the impact of the decision on artists and fans, but said it prioritizes the responsibility to fight for a deal that prioritizes compensation for singers and songwriters. “We honor our responsibilities with the utmost seriousness. Intimidation and threats will never make us shirk these responsibilities,” she concluded.

What TikTok says

On the same day, TikTok also released a public statement saying it was “sad and frustrating that Universal Music Group has put its own ambition ahead of the interests of its artists and songwriters.” The platform also accused the record label of creating a “false narrative.”

“The fact is that they have chosen to no longer have the powerful support of a platform with over a billion users that serves as a free means to promote and discover their talents,” he wrote.

Finally, the network said it “has entered into agreements that put artists first with all other record labels and distributors.” “Clearly, Universal’s selfish actions are not in the best interests of artists, songwriters and fans,” she said.

Source: Terra

Earl

Earl Johnson is a music writer at Gossipify, known for his in-depth analysis and unique perspective on the industry. A graduate of USC with a degree in Music, he brings years of experience and passion to his writing. He covers the latest releases and trends, always on the lookout for the next big thing in music.