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When Uber Eats used mazie‘s “Dumb Dumb” in a commercial that played during the last Super Bowl, she ordinarily would have used the sought-after synch to promote the 2021 song relentlessly to her 375,000 TikTok followers. But her label, Goodbye Records, is distributed through Universal’s Virgin Music Group, which pulled its music from the social media platform at the beginning of February after negotiations for a new licensing deal fell apart. “It’s insane,” mazie says. “My song was just in a Super Bowl commercial, and I have to repromote it [by] using other people’s ripped versions of my song on the platform.”
The singer-songwriter, whose track went viral last year and says it “changed my life in every single way,” is one of many frustrated developing artists signed to or distributed by the world’s largest music company. They all have similar complaints: Their label contacts have spent years instructing them to focus the bulk of their marketing efforts on TikTok and its 1 billion-plus monthly active users. With their music no longer on the platform, they are scrambling for alternate ways to be heard.
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“A lot of us are left at the drawing board again, especially when we’ve gotten an artist over the anxiety of putting themselves out there on TikTok,” says Sabrina Finkelstein, manager of Los Angeles singer Kristiane. “Now that that’s gone, it brings you almost to square one.”
Kristiane is signed to Fader, a label distributed by UMG’s Virgin Music Group, so she’s building buzz for her upcoming Stray Dog EP by deemphasizing TikTok and talking to fans on Instagram Broadcast Channels and other platforms. “We’re putting up lost-dog posters all over New York and other cities,” says Finkelstein, who is also A&R director for the Sony Music-owned RECORDS label. “Small things you can do to bring it off TikTok and into the real world.”
Springfield, Mo., folk-country band Pawns or Kings can no longer post its 2022 track “Anymore” on TikTok, because Universal bought its distributor, Ingrooves, and merged it with Virgin Music Group — even after singer Edward Stengel spent $7,000 of his own money on a video. “That song was always our spearhead song,” says Stengel, who is still promoting the track on YouTube, Facebook and Instagram while posting older material released through independent label ONErpm on TikTok. But Pawns or Kings’ early music is darker than its current work, Stengel says, which makes the stopgap strategy “an abrupt pivot” for the band’s image.
Canadian rapper bbno$ says his 2021 track “Edamame,” which has nearly 426 million Spotify plays, was “having a moment” on TikTok when the UMG ban took effect. The artist had licensed the song to mTheory’s distribution division for a five-year period — the same mTheory that UMG acquired in 2022 (putting its top executives in charge of Virgin). “I’m actually fully independent. It was just this one deal that looped all the songs together, and I got fucked,” says bbno$, who is considering altering the song with pitch-correction and wild sound effects — such as the voice of SpongeBob SquarePants repeating, “I’m ready!” — to avoid detection from digital sweeps.
L.A. rock band Dead Posey, which released its single “Zombies” just days before the ban, sped up its songs on TikTok by 5% — an effective solution, although artists can’t link unofficial songs to official Spotify streams. “It has not been taken down,” says singer Danyell Souza, whose label, Position Music, has a Virgin distribution deal. Adds guitarist Tony Fagenson: “We’re hopeful this resolves soon in a favorable way to artists. In the meantime, we have to play some tricks to keep using this platform.”
UMG-signed and -distributed artists are also turning to their most potent asset on TikTok: fans. One of Kristiane’s followers recently posted a lip-sync video to a concert track, declaring, “At least UMG can’t take away my live audios.” Finkelstein is supportive of this approach. “No matter what, the fans are going to find a way to share their artists’ music and support them,” she says. “There are ways around it.”
This story will appear in the March 2, 2024, issue of Billboard.
Universal Music Group is poised to open its first Capitol Studios outside of Hollywood, plus live performance spaces, music education academies and a new record label, as part of a collaboration with DGMC in the burgeoning music hub of the United Arab Emirates. Explore Explore See latest videos, charts and news See latest videos, charts […]
Capitol Music Group chair and CEO Michelle Jubelirer is exiting the company, she announced in a memo to staff this morning (Feb. 6) that was obtained by Billboard. The move comes less than a week after Universal Music Group chairman/CEO announced a restructure of the label groups at the company that would shift Capitol, among other labels, under the oversight of Interscope Geffen A&M chairman/CEO John Janick.
Jubelirer, who has held her current title since December 2021, will depart the label after today.
“I am deeply saddened that I will no longer be at the company we rebuilt and took to new heights over the past two years,” she writes. “As I’ve said before, I don’t think any label group has been able to turn things around as quickly as we have managed to, and I’m certain that we’ve set Capitol Music Group on course toward a great future.”
Jubelirer joined Capitol in early 2013 as executive vp under then-CMG CEO Steve Barnett, and quickly became his second in command at the music group, which also encompassed Motown, Blue Note, Astralwerks and, until recently, indie distributor Virgin Music. In 2015 she was promoted to COO, a role she held throughout Barnett’s reign atop the label, which ended at the end of 2020. She remained on as COO under Barnett’s successor, Jeff Vaughn, who spent a short time in the top role, before Jubelirer succeeded Vaughn at the end of 2021.
A longtime attorney who also spent time at Sony Music prior to joining Capitol, Jubelirer was part of the revitalization of the storied label following UMG’s acquisition of EMI in 2012, and has been a regular on Billboard’s Women in Music and Power 100 features in the years since. Upon her appointment in 2021 to the top job, Jubelirer became the first female executive to head Capitol in its 80-plus-year history.
In 2023, Capitol racked up a 6.66% market share in the U.S., including a 5.90% current market share — which measures releases from the past 18 months — which was fifth among all labels for the full year. Both numbers were up significantly over her first year at the helm in 2022, when Capitol’s overall market share stood at 6.40% and current market share was 4.97%.
Last week, Grainge announced a restructuring of UMG’s labels, returning the company to an operational structure more similar to the one that existed from 1999 through 2014, prior to the full integration of Capitol. Under this new configuration, which is loosely an East Coast-West Coast alignment, Janick is overseeing Interscope, Geffen, Capitol, Motown, Priority, Verve and Blue Note, while Republic Records CEO Monte Lipman will oversee Republic, Def Jam, Island and Mercury.
See her letter to staff below in full:
To my Capitol Music Group Team,
I wanted you to hear this news directly from me: I’ve made the extremely difficult decision to leave the company that has been my home for more than a decade, and so, today will be my last as Chair & CEO of Capitol Music Group.
I am deeply saddened that I will no longer be at the company we rebuilt and took to new heights over the past two years. As I’ve said before, I don’t think any label group has been able to turn things around as quickly as we have managed to, and I’m certain that we’ve set Capitol Music Group on course toward a great future.
Together, we became a real team; a diverse group of individuals bonded by our love of music and passion for artistry, and whose differences in backgrounds and cultural tastes made each of us stronger advocates and champions for our artists. In such a competitive and fast-paced world, we gave it our all—every minute of every day—so that our artists could seize the opportunity to realize their dreams and ultimately succeed.
I am so fortunate to work in a business that I love and be constantly surrounded by music and the talented people that create it. Every day, I renewed my promise to do my very best for our artists, and they have given me so much in return. No matter where I find myself in this business, I will always approach my relationships with artists as their advocate, their protector, and their fan.
I will let you know of my future plans as soon as I can.
In closing, let me simply say to each of you: Thank You. It has been my honor to be on this journey with you.
With love and appreciation,
Michelle
More than one third of the songs — at least 17 tracks — on Billboard’s TikTok Top 50 chart are no longer available for use on the app after Universal Music Group‘s negotiations with the platform fell apart last week. UMG said the Bytedance-owned company refuses to pay “fair value for the music.”
The missing tracks include several of the most popular songs on TikTok: Muni Long’s “Made for Me” (No. 2 on the TikTok Top 50), Xavi’s “La Diabla” (No. 7), Drake’s “Rich Baby Daddy” (No. 9), and Lana Del Rey’s “Let the Light In” (No. 11).
The absence impacts both recent releases — Ariana Grande’s “Yes, And?” along with a pair of songs from Nicki Minaj’s December album — and catalog: Lesley Gore’s “Misty,” originally released way back in 1963, and Sophie Ellis-Bextor’s “Murder on the Dancefloor,” which came out in 2002 but charted on the Hot 100 for the first time recently due to a synch in the film Saltburn.
Users still appear to be able to still make videos with an official “orchestral version” of “Murder on the Dancefloor” — likely because it’s licensed to a different label. And even though UMG and TikTok’s licensing agreement expired, 10k.Caash’s “Aloha,” which was released by the UMG label Def Jam in 2019, is available to soundtrack TikTok videos as of Thursday morning.
In addition, TikTok has long had a vibrant bootleg scene, which means that in some cases, users have uploaded their own versions of UMG songs or made remixes in place of the official sounds. Those bootlegs were also a source of frustration for the record company, which said last week that “TikTok makes little effort to deal with the vast amounts of content on its platform that infringe our artists’ music.” It’s worth noting, however, that labels often encourage remixers to rework their artists’ songs without the proper clearances in the hopes that it starts a viral trend.
TikTok has been a dominant force in the music industry since 2019, transforming both marketing and signing strategy. “We fully immerse ourselves in the diverse subcultures of TikTok,” said Alec Henderson, vp of digital at the independent label APG, in December. “We have weekly meetings dedicated to sharing things that we’re seeing there. We view the TikTok viral chart with a competitive mindset. And we put a high emphasis on working with artists that are native to the platform.”
As the industry became increasingly focused on TikTok, it also became increasingly uneasy about the platform’s power. The app became increasingly saturated — brands, movies, videogames, cats, ASMR, you name it — which made marketing music both more expensive and less effective. Labels are used to having some level of influence over promotional levers; TikTok proved frustratingly hard to leverage.
Tension over the platform’s low payouts started to grow as well. TikTok’s parent company, ByteDance, “doesn’t view music as a value add,” one senior executive told Billboard in the fall of 2022. “They just view music as a cost center they have to limit as much as possible.”
“The [payout] numbers are horrifying,” said a manager at the time. A marketer who oversaw the campaign for a single that was used in roughly half a million TikTok videos, earning billions of views, found that his artist took home less than $5,000 from the platform. It was no surprise when UMG CEO Lucian Grainge fired a warning shot late in 2022, noting pointedly at an industry conference that a value gap was “forming fast in the new iterations of short-form video.”
Last week, Universal Music Group said that its license agreement with TikTok was set to expire on Jan. 31. “TikTok proposed paying our artists and songwriters at a rate that is a fraction of the rate that similarly situated major social platforms pay,” UMG said in an open letter. The record company accused TikTok of trying to “intimidate us into conceding to a bad deal that undervalues music and shortchanges artists and songwriters as well as their fans.”
After UMG issued its statement, TikTok hit back, accusing the record company of promoting a “false narrative.” It’s “sad and disappointing,” TikTok added, “that [UMG] has put their own greed above the interests of their artists and songwriters.” These comments elicited yet another response from UMG.
If the standoff between the two companies continues, it will start to affect even more music: At the end of the month, TikTok will have to take down any song that Universal Music Publishing Group (UMPG) has a stake in. Many UMPG songwriters collaborate with artists signed to other labels (or are signed as artists on other labels). This means that the number of songs that become unusable on TikTok could balloon.
Artists can market their music elsewhere, of course — TikTok has competitors in both YouTube Shorts and Instagram Reels. However, neither of those apps have demonstrated the ability to break a song with the speed and intensity of TikTok.
The music industry’s Cold War with TikTok just turned very hot — and extremely complicated. By the end of the month, Universal Music Group (UMG) will require the platform to take down music it controls even a small part of, by using what some music executives call “the nuclear option.” This will prevent some other rights holders from making money on TikTok — but at least some of them are cheering it on.
On Jan. 30, the day before UMG’s latest deal with TikTok lapsed, the company announced in an open letter that “we must call time out on TikTok” and began removing its recorded music from the platform. After a 30-day grace period, UMG says it will also require TikTok to take down any song in which Universal Music Publishing Group (UMPG) controls any rights. That means songs by Harry Styles, SZA and Bad Bunny; those with writing credit from creators like Metro Boomin and Jack Antonoff; and even those that sample compositions by UMPG songwriters. In some markets, that might account for more than half of the music used on the platform.
The question is what this means for the rest of the business. Styles, SZA and Bad Bunny are three of the biggest acts signed to or distributed by Sony Music Entertainment, so this would affect that label, as well as Warner Music Group, BMG and scores of independents. From the end of February until UMG and TikTok reach a new licensing deal, they will not earn any money on music to which UMG has any rights — a relatively minor income stream at this point — while losing out on an important source of promotion. In the long term, of course, a win for UMG that pushes TikTok to pay more for the rights to music could also help the entire industry.
This Cold War turned hot pretty suddenly. For years, rights holders have embraced TikTok as a promotional vehicle while griping about the short-form video platform’s low payouts in what seemed like a repeat of the music industry’s contentious relationship with YouTube. Both can pay less than other platforms because in many cases they can essentially operate under the Digital Millennium Copyright Act, which allows them to make available content uploaded by users until rights holders ask for a takedown. In language that sounds like it could have come from YouTube a decade ago — or from a file-sharing service a decade before that, for that matter — in a statement released on social media, TikTok said that UMG had abandoned a popular platform “that serves as a free promotional and discovery vehicle for their talent.” Basically, they offer exposure. But as creators and rights holders might say — and here you have to imagine a Borscht Belt delivery — you could DIE of exposure!
UMG’s move came at the worst possible time for TikTok: the day before a Senate committee hearing on child safety and social media, during an escalating Middle East conflict that has focused negative attention on TikTok’s Chinese ownership, and during a week when much of the music business was in Los Angeles for the Grammys. This isn’t entirely a coincidence: UMG’s long-term deal actually expired at the end of 2023, and Jan. 31 was just the end of a one-month extension. (A source close to TikTok said that the two sides were close to a deal at the end of December, while a source close to UMG said that was not the case.) Fair or not, the pressure in Washington could be substantial. (I have serious concerns about a Chinese-owned app becoming an important source of news on Taiwan, but I’m not sure that has much to do with music licensing.)
So far, there has been some support for UMG from other companies in the music business. Neither of the other two major labels would comment — Sony declined and a spokesperson for Warner did not return messages — and it’s unlikely that they will, for antitrust reasons. Primary Wave, Downtown and Hipgnosis have expressed support for Universal, though. And at a Grammy Week music publishers event, National Music Publishers’ Association (NMPA) president/CEO David Israelite pointed out that the model contract with TikTok that’s used by many NMPA members expires in April.
Tik-tok, indeed.
The dynamic here is complicated but potentially revolutionary. For the last two decades, most of the negotiations between media and technology companies have involved a few rights holders that each control significant amounts of content and a platform that has a larger share in its market than they do — think labels and streaming services or book publishers and Amazon. Since antitrust law almost always prevents big companies from negotiating together — a lesson Apple and some book publishers learned the hard way — the platforms have an advantage. In this case, UMG managed to get more leverage by using publishing rights that by their nature will affect impact a lot of compositions, creating a situation where some small companies can cheer it on.
The question is what happens after February. Rights holders can live without the money they make on TikTok, but what about the platform’s promotional value for breaking artists? For now, presumably, artists on other labels who don’t work with UMPG songwriters will gain an advantage. If this dispute lasts a few months, that might give smaller labels enough of an advantage to matter. If it lasts longer than that, though, TikTok could face more competition, too. The company has suggested that music accounts for a modest amount of the platform’s value, but that would be tested if TikTok has to compete against other short-form video platforms that have rights to use music that it doesn’t.
The more likely scenario is that UMGand TikTok will reach an agreement — perhaps one that both will grumble about but accept — and then over time find ways to work together that benefit both sides, plus creators of all kinds. Short-form video could eventually grow into a truly important revenue stream. By that time, of course, a new platform will probably come along to challenge that, too.
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Source: VALERIE MACON / Getty / UMG / Universal Music Group / TikTok
Your music selection for your TikTok posts took a serious hit.
Spotted on The Verge, artists like Taylor Swift, Drake, JAY-Z, BTS, Olivia Rodrigo, and more all had their music pulled off TikTok after the platform and UMG (Universal Music Group) failed to extend the expired licensing agreement when negotiations between the two entities broke down.
Per The Verge:
On Tuesday, UMG accused the video platform of attempting to bully it into accepting a “bad deal” that didn’t soothe the record labels’ concerns regarding adequate compensation for artists and songwriters, protections against AI-generated music, and online safety on the platform to protect artists from “hate speech, bigotry, bullying and harassment.” TikTok responded saying that it was “disappointing” that UMG had “chosen to walk away from the powerful support of a platform with well over a billion users,” and accused the label of putting its “own greed above the interests of their artists and songwriters.”
Rolling Stone reports takedowns on the platform began “gradually” on Wednesday night when “UMG-owned recordings such as Taylor Swift’s “Cruel Summer,” Olivia Rodrigo’s “Get Him Back,” and Lana Del Rey’s “Let the Light In” were no longer appearing in search results.”
Videos from popular TikTok accounts like Dwayne “The Rock” Johnson featuring songs from UMG artists were also pulled off the platform.
In an open letter shared by Rolling Stone, UMG wrote:
TikTok proposed paying our artists and songwriters at a rate that is a fraction of the rate that similarly situated major social platforms pay. Today, as an indication of how little TikTok compensates artists and songwriters, despite its massive and growing user base, rapidly rising advertising revenue and increasing reliance on music-based content, TikTok accounts for only about 1% of our total revenue.
Ultimately TikTok is trying to build a music-based business, without paying fair value for the music,” UMG claimed. It accused TikTok of trying to “bully” it into accepting a “bad deal” by “selectively removing the music of certain of our developing artists, while keeping on the platform our audience-driving global stars.” Universal further alleged that TikTok was allowing its platform to be “flooded” with AI-generated recordings. The company described TikTok’s response to AI as “nothing short of sponsoring artist replacement by AI.
TikTok Responded
The popular Chinese-owned platform had something to say in response to UMG’s open letter in a statement shared online writing:
It is sad and disappointing that Universal Music Group has put their own greed above the interests of their 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 has been able to reach ‘artist-first’ agreements with every other label and publisher. Clearly, Universal’s self-serving actions are not in the best interests of artists, songwriters and fans.
It sounds like UMG and TikTok are far apart, but we believe cooler heads will prevail, and you will be adding Taylor Swift songs to your cooking videos in the future.
There is just too much money possibly being left on the table here.
In an open letter, TikTok states that they have been unable to reach an agreement with UMG. The music giant says it will pull its entire music catalog from the platform on Jan. 31. Ice Spice announced that her debut album, titled ‘Y2K,’ will be out later this year. SZA has confirmed that a collaboration […]
Alfredo Delgadillo has been appointed president and CEO of Universal Music México, Billboard can exclusively announce.
Previously Universal Music México’s managing director, Delgadillo’s newly-expanded role includes Universal Music Group’s regional Mexican label, Fonovisa-Disa. The Mexico City-based executive will continue to report directly to Jesús López, chairman/CEO, Universal Music Latin America & Iberian Peninsula.
“We are in a unique moment of growth for Latin music and Regional Mexican music, so this new responsibility comes with an even stronger commitment to continue growing the success and reach of our artists both in Mexico and around the world, alongside growing our live and management businesses,” Delgadillo said in a statement.
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“Now with the addition of the Fonovisa-Disa labels,” he continued, “I am looking forward to working closely with its leader Antonio Silva, for whom I have absolute respect and their entire team, to ensure that the legacy of Fonovisa-Disa, as the symbol and leader of Regional Mexican music, continues to grow and expand to the rest of the world.”
After a 10-year run with EMI Music México, Delgadillo returned to Universal in 2013 (when UMG acquired EMI) as general manager of Universal Music México, and in 2017 was promoted to managing director where he was key in the development of local acts, such as Mon Laferte and Caloncho, while contributing to the growth of international acts in Mexico like J Balvin, David Bisbal, Metallica, U2 and Taylor Swift, among others.
During his time with the label, the industry veteran, who began his career at Universal Music México in 1998, has overseen strategies to “take UMG’s international acts to the top of the Mexican charts” and “was responsible for the development and consolidation of Global Talent Services (GTS),” according to a press release.
“Alfredo is an executive with extensive experience in all fields of entertainment, including records, management and touring,” added Jesús López, Universal Music Latin America and Iberian Peninsula chairman and CEO. “He has incredible leadership capacity and a great track record of developing and integrating young executives into his teams. These are among the many reasons for his ongoing success at Universal Music Mexico. I wish him every success in his new mission within the company. He has the support of our entire team.”
BERLIN — Deutsche Grammophon marked its 125th anniversary in Berlin last night (Dec. 6) at the first of three concerts to celebrate the classical music label’s legacy, as well as its current stars. At the city’s storied Konzerthaus, new signing Joana Mallwitz conducted her orchestra; violinist Bomsori Kim and cellist Kian Soltani performed Ludwig van Beethoven‘s Triple Concerto, and Bruce Liu played the German master’s Choral Fantasy. Liu, one of the label’s rising stars, in 2021 won the International Chopin Competition.
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The Berlin concert will be followed by concerts in Philadelphia and Seoul. The U.S. event, on Dec. 9, will feature María Dueñas, Hélène Grimaud and Moby, who has recently released some work on the label; and in South Korea, on Dec. 15, Vikingur Ólafsson will perform the “Goldberg Variations.”
“To this day, Deutsche Grammophon is home to the biggest classical stars of their time,” said Frank Briegmann, chairman and CEO of Universal Central Europe and Deutsche Grammophon, at a reception before the concert. “It is the guardian of a cultural treasure of incredible proportions.”
Deutsche Grammophon, a cultural institution in the classical music world, is the oldest operating record company. It was founded in 1898 by Emile Berliner, a German Jew who moved to the U.S. and in 1887 patented the “Gramophone,” a technology for recording and reproducing sound by engraving and tracing it with a stylus – initially on a cylinder and then on a flat disc. After licensing the rights to manufacture his invention, he sent his nephew, Joseph Sanders, to open a German subsidiary, which severed its relationship with the parent company in 1914.
In 1941, the company was purchased by Siemens & Halske, a corporate ancestor of today’s Siemens company. Over the next two decades, Deutsche Grammophone became known for its distinctive yellow logo and high-fidelity classical music recordings that were marvels of technology at the time and are still considered iconic today. As its rival recording companies shifted toward pop, Deutsche Grammophone focused on classical, and then also contemporary music. In 1962, Siemens formed a joint venture with the Dutch company Philips to run the company that became PolyGram International – which in 1999 was purchased by what was then the parent company of Universal Music Group and merged with it.
The company’s catalog, reputation and logo still endure, and about a year ago it launched Stage+, a high-fidelity subscription streaming service that includes access to performances on video. The label’s anniversary concerts will be shown on the service.
“Nothing has changed,” said label president Dr. Clemens Trautmann, referring to the company’s record for using the new technology of the time. “And everything has changed.”
Taiwanese Mandopop singer-songwriter Jay Chou and his record label JVR Music have entered into a strategic partnership with Universal Music Greater China. Under the agreement, announced Wednesday in Beijing, UMG will market and distribute Chou’s back catalog and future projects, while also absorbing a JVR artist roster that includes Patrick Brasca and Young (Cao Yang). Earlier […]
