TikTok’s embrace of artificial intelligence tools to generate content, including with its own Creative Assistant, is deemed a major threat to artists’ rights by UMG. — Reuters
ByteDance Ltd’s TikTok is offering unfair terms and has resorted to intimidation in its talks to extend a licensing agreement for artists, according to Universal Music Group NV.
In an open letter published Tuesday (Jan 30), the music company identified fair compensation for artists and protections against AI-generated content diluting royalties as key stumbling blocks to a new deal with TikTok. The Chinese-owned firm responded by saying UMG put greed above the interests of artists and songwriters.
"Despite Universal’s false narrative and rhetoric, the fact is they have chosen to walk away from the powerful support of a platform with well over a billion users that serves as a free promotional and discovery vehicle for their talent,” TikTok said in a response to the letter.
The existing terms between UMG – which counts Taylor Swift among the artists signed to its labels – and TikTok expire at the end of January, and the latest communiques from the two sides suggest they may be at an impasse. UMG could pull its artists’ content from the platform should they fail to reach an agreement.
TikTok’s embrace of artificial intelligence tools to generate content, including with its own Creative Assistant, is deemed a major threat to artists’ rights by UMG. The social platform has demanded "a contractual right which would allow this content to massively dilute the royalty pool for human artists, in a move that is nothing short of sponsoring artist replacement by AI,” UMG said in its letter.
TikTok revenue accounts for only 1% of UMG sales and its renewal offer was "less than the previous deal, far less than fair market value and not reflective of their exponential growth,” UMG said. Among TikTok’s negotiation tactics, UMG said the short-video leader pulled the music of some lesser-known UMG artists from the platform – while keeping the high-profile stars aboard – as an intimidation play. – Bloomberg
