TikTok has come to terms with the loss of Universal

The distribution of awards from the American Recording Academy (see “Kommersant” on February 5) temporarily diverted attention from the main intrigue of the music industry – the removal of works published by Universal Music Group from the library of the Chinese social network TikTok. But the problem did not go away. About the development of the scandal – Igor Gavrilov.

The licensing agreement governing the relationship between TikTok and Universal Music Group (UMG) expired on January 31. This means that TikTok users who want to soundtrack their videos with songs from the Universal catalog can no longer do so. UMG demanded that TikTok executives increase the amount of royalties to artists for using their music, as well as prevent the use of AI to change musical works and tighten the fight against aggression among users of the social network. As stated in UMG’s official letter, its departure from TikTok should not significantly affect the business of the company’s clients, since money from the use of songs in social network videos constitutes only 1% of the record major’s total income. TikTok representatives accused UMG of greed and said they considered UMG’s arguments to be “false rhetoric.” In addition to money, using music in short videos gives artists free promotion and reveals their talents, say the authors of TikTok’s response statement.

The presence of music in the TikTok library is important not only for performers and owners of phonograms. The conflict between Universal and TikTok is a serious blow to songwriters as well. As Billboard noted in a recent post, we’re not only seeing giant names like Taylor Swift, Olivia Rodrigo, BTS, Drake, and more leaving TikTok, but also songwriters affiliated with Universal Music Publishing Group (UMPG), the music publisher that operates 4 million copyright contracts. From now on, any post touched by a UMPG client will also be deleted from the TikTok library. Even if it was released not by Universal, but by another company. For example, Harry Styles, Bad Bunny and SZA are not Universal artists, they have artistic contracts with other companies, but their royalties are managed by the colossus UMG. On the other hand, artists from other companies work with creators like Jack Antonoff, Fred again.. and Metro Boomin, which means their work is also leaving TikTok’s library.

According to Billboard, in the third quarter of 2023, one in five songs on the US charts were written by UMPG writers. When Universal talks about 1% of total revenue, the company does not take into account that the number of authors of any pop hit that goes viral on TikTok or plays on the radio today ranges from 3-4 to 30. The “author rooms” model with a large number of songwriters involves royalties to everyone who “walked into the room.” And if at least one of the dozen authors of a popular track is a UMPG client, the entire track will be removed from TikTok. UMG’s decision thus affects almost the entire major industry.

If you look at today’s iTunes charts, you’ll find that the top 20 positions are entirely occupied by tracks from artists who performed at last Sunday’s Grammy ceremony, led by Tracy Chapman’s “Fast Car,” which the public remembered thanks to Luke Comes’ cover version and the singer’s performance at the ceremony. In theory, both Grammy winners and performing artists should prepare to make significant profits from the increase in the number of auditions. However, behind the smiles of many Grammy guests were hidden sad thoughts about whether the conflict between Universal and TikTok would personally affect them and how much the loss would be.

Music market analyst Zhenya Murodshoeva notes in her Telegram channel that if Universal’s actions are an attempt to follow in the footsteps of the recent strike of actors and screenwriters, then it will not be possible to push TikTok to the wall in a consolidated manner, since the third largest major Warner Music Group has updated deal with the social network. TikTok does not intend to give up; the platform feels that it has the power behind it. TikTok’s parent company ByteDance earned $29 billion in the three months to June 2023, up about 40% from the previous year, according to the Financial Times.

Neither Taylor Swift, nor Drake, nor other UMG clients with the image of fighters for the interests of fans have yet responded to UMG’s departure from TikTok. TikTok itself seems ready to live without UMG artists. And here we should not forget that TikTok, with all its gigantic influence on the music market, is not a music platform. As Ms. Murodshoeva reminds us, people go there not to listen to music, but to tell their own stories. Sometimes with music. Not under this one, then under the other.