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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 […]
Ahead of the United Nations Climate Change Conference starting tomorrow (Nov. 3) in Dubai, Sony Music, Universal Music Group and Warner Music Group have announced the creation of the Music Industry Climate Collective (MICC). This alliance will work to address the challenges and changes in the global climate and how they relate to the music industry.
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The MICC’s first initiative will be offering comprehensive sectoral guidance for measuring scope 3 greenhouse gas emissions, defined as “emissions that are not produced by the company itself and are not the result of activities from assets owned or controlled by them, but by those that it’s indirectly responsible for up and down its value chain.”
For the music sector, the vast majority of greenhouse gas (GHG) emissions are in scope 3.
MICC’s members have already worked with scientific experts on their first draft of the sectoral guidance, which will be made available to industry participants. MICC’s members have also initiated calls for wider industry input through an advisory council composed of independent record labels, value chain partners, and climate experts. The guidance will be further developed through an inclusive, multi-stakeholder process.
The American Association of Independent Music, a non-profit trade organization representing more than 600 independently owned U.S. record labels, will serve as an advisor to the MICC. A2IM will assist in myriad ways, initially with recommendations on how best to include small-to-medium-sized businesses in this initiative.
“This initiative demonstrates what can be achieved when music leaders come together with a shared vision and commitment to sustainability,” the MICC’s founding members say in a group statement. “We are proud to collaborate to amplify environmental stewardship and offer practical recommendations and strategies tailored to the unique needs of music companies, regardless of their size or scale of operations.
“Together, we must continue to make progress on this vital priority,” the statement continues. “We welcome all to join us in reducing our industry’s carbon footprint by working together to ensure an environmentally responsible future for music and our planet.”
2023 is on track to be the hottest year on record, with many concerts and festivals affected by climate change since the start of the year.
Universal Music Group (UMG) wants a federal judge to immediately block artificial intelligence company Anthropic PBC from using copyrighted music to train future AI models, warning that the “damage will be done” by the time the case is over.
A month after UMG sued Anthropic for infringement over its use of copyrighted music to train its AI models, the music giant on Thursday demanded a preliminary injunction that will prohibit the AI firm from continuing to use its songs while the case plays out in court.
The music giant warned that denying its request would allow Anthropic “to continue using the Works as inputs, this time to train a more-powerful Claude, magnifying the already-massive harm to Publishers and songwriters.”
“Anthropic must not be allowed to flout copyright law,” UMG’s lawyers wrote. “If the Court waits until this litigation ends to address what is already clear—that Anthropic is improperly using Publishers’ copyrighted works—then the damage will be done.”
“Anthropic has already usurped Publishers’ and songwriters’ control over the use of their works, denied them credit, and jeopardized their reputations,” the company wrote. “If unchecked, Anthropic’s wanton copying will also irreversibly harm the licensing market for lyrics, Publishers’ relationships with licensees, and their goodwill with the songwriters they represent.”
UMG filed its lawsuit Oct 18, marking the first major case in what is expected to be a key legal battle over the future of AI music. Joined by Concord Music Group, ABKCO and other music companies, UMG claims that Anthropic – valued at $4.1 billion earlier this year — is violating copyrights en masse by using songs without authorization to teach its AI models learn how to spit out new lyrics.
“In the process of building and operating AI models, Anthropic unlawfully copies and disseminates vast amounts of copyrighted works,” lawyers for the music companies wrote. “Publishers embrace innovation and recognize the great promise of AI when used ethically and responsibly. But Anthropic violates these principles on a systematic and widespread basis.”
AI models like the popular ChatGPT are “trained” to produce new content by feeding them vast quantities of existing works known as “inputs.” Whether doing so infringes the copyrights to that underlying material is something of an existential question for the booming sector, since depriving AI models of new inputs could limit their abilities. Content owners in many sectors – including book authors, comedians and visual artists – have all filed similar lawsuits over training.
Anthropic and other AI firms believe that such training is protected by copyright’s fair use doctrine — an important rule that allows people to reuse protected works without breaking the law. In a filing at the Copyright Office last month, Anthropic previewed how it might make such argument in UMG’s lawsuit.
“The copying is merely an intermediate step, extracting unprotectable elements about the entire corpus of works, in order to create new outputs,” the company wrote in that filing. “This sort of transformative use has been recognized as lawful in the past and should continue to be considered lawful in this case.”
But in Thursday’s motion for the injunction, UMG and the music companies sharply disputed such a notion, saying plainly: “Anthropic’s infringement is not fair use”
“Anthropic … may argue that generative AI companies can facilitate immense value to society and should be excused from complying with copyright law to foster their rapid growth,” UMG wrote. “Undisputedly, Anthropic will be a more valuable company if it can avoid paying for the content on which it admittedly relies, but that should hardly compel the Court to provide it a get-out-of-jail-free card for its wholesale theft of copyrighted content.”
A spokesperson for Anthropic did not immediately return a request for comment on Friday.
SINGAPORE — BandLab Technologies has pledged to engage responsibly and ethically with AI, part of a “strategic collaboration” with Universal Music Group.
Announced today (Oct. 18), Singapore-based BandLab becomes the first music creation platform to throw its support behind the Human Artistry Campaign (HAC), a global coalition devoted to ensuring fair and safe play with AI technologies.
“As the digital landscape of music continues to evolve,” reads a joint statement, “this collaboration is designed to be a beacon of innovation and ethical practice in the industry and heralds a new era where artists are supported and celebrated at every stage of their creative journey.”
Led by CEO Meng Ru Kuok, BandLab Technologies operates the largest social music creation platform, BandLab. Among the service’s breakouts is Houston artist d4vd (pronounced “David”), who, in July 2022 as a 17-year-old, released “Romantic Homicide,” a track he had made using BandLab. After going viral on TikTok, the song entered the Billboard Hot 100 (peaking at No. 45) as d4vd signed to Darkroom/Interscope. He’s one of a growing number of BandLab users who’ve developed deeper ties with UMG.
“We welcome BandLab’s commitment to an ethical approach to AI through their accessible technology, tools and platform,” comments Lucian Grainge, chairman & CEO, Universal Music Group, in a statement. “We are excited to add BandLab Technologies to a growing list of UMG partners whose responsible and innovative AI will benefit the creative community.”
Further to Grainge’s comments, Michael Nash, executive VP and chief digital officer at UMG, points to an expanding relationship with BandLab, noting “they are an excellent partner that is compelling for us on multiple fronts.”
BandLab Technologies’ assets are grouped under the holding company of Caldecott Music Group, for which Meng serves as CEO and founder. ““BandLab Technologies and our wider Caldecott Music Group network is steadfast in its respect for artists’ rights,” he comments in a statement, “and the infinite potential of AI in music creation and we believe our millions of users around the world share in this commitment and excitement.”
Meng showed his support in August at Ai4, an AI conference in Las Vegas, by way of the presentation “Augmenting the Artist: How AI is Redefining Music Creation and Innovation.” During that session, he discussed the importance of ethical AI training and development and showcased the company’s AI music idea generator tool SongStarter.
New technologies promise “unbelievable possibilities to break down more barriers for creators,” he notes, but “it’s essential that artists’ and songwriters’ rights be fully respected and protected to give these future generations a chance of success.”
The Human Artistry Campaign was announced during South by Southwest in March along with a series of seven key principles for protecting artists in the age of AI. More than 150 industry organizations and businesses have signed up.
UMG’s AI collaboration with BandLab follows separate arrangements forged with Endel and YouTube.
This “first of its kind” strategic partnership with BandLab Technologies, say reps for UMG, align the “two organizations to promote responsible AI practices and pro-creator standards, as well as enabling new opportunities for artists.”
Universal Music Group announced a new wellness app and a partnership with Ariana Huffington‘s Thrive Global on Tuesday during its first-ever Music + Health conference. Held at the One Hotel in West Hollywood, the event featured keynote remarks from Huffington and UMG chairman and CEO Sir Lucian Grainge, plus panels and conversations deep-diving the therapeutic and medical benefits of music.
During the event, UMG said it is working on a forthcoming, music-centric wellness app called Sollos that will deploy “cognitive science and proprietary audio technology to support focus.” As Music Business Worldwide spotted, the label group submitted a trademark application for the brand in late August, however no additional information on the app has been released.
UMG also announced a new partnership with Thrive Global that will see UMG become the exclusive music partner for their Thrive Reset stress management tool. Huffington launched Thrive in 2016 as part of her years-long campaign to stamp out “burnout” and to help companies improve the well-being of workers through science-based actions. The Thrive Reset app uses music and breathing exercises to help users reduce stress in 60-second bursts.
“Universal’s catalog will make Thrive Resets more engaging, personalized and joyful to drive even greater behavior change through our platform, helping people reduce stress and connect each day with what they love about their lives,” said Huffington, who famously installed “sleep pods” — in rooms with names like Napquest — while leading The Huffington Post. “As we learned today from neuroscientists, historians, doctors and entrepreneurs, we’re just getting started with all of the ways we can leverage music, both for preventive health and to augment medical treatment, and I am looking forward to using today’s conference to accelerate this growing movement of music and health.”
On the licensing front, UMG announced it would provide selections from its vast catalog to digital therapeutic company soundBrilliance for use in closed clinical trials. According to the label, these trials will use music, psychology & measurement techniques “to create tools & exercises which empower people to better self-manage the fundamentals of health.”
The day featured a Zoom chat with music producer Rick Rubin on the topics of creativity, music and wellbeing, plus panel discussions featuring Dr. Lisa Miller, Dr. Daniel Levitin, Dr. Assal Habibi, Jaron Lanier and neurosurgeon and scholar Dr. Ali Rezai, as well as a presentation from MedRhythms co-founder and CEO Brian Harris. The day ended with a conversation on mental health between Grainge, Huffington and Selena Gomez.
There were also performances by Republic Records’ artist Chelsea Cutler and Decca Records’ Chad Lawson, plus panel appearances from UMG partners including Apple Fitness +, Endel, Music Care, Universal Production Music, Thrive Reset and a Havas Health panel that looked at music’s power to help end the health equity crisis.
“Throughout my life, I have experienced countless examples of how music can change people’s mood, comfort them in times of emotional crisis, or even help them physically,” Grainge said. “At Universal, I wanted this powerful relationship between music and health to not simply be a series of anecdotal observations, I want it to be a key component of our strategy, so we can really put music to work in ways it has never been used before. As a company, we are fundamentally rooted in the belief that music is a powerful force for good, and now we have the science and technology—with AI and therapeutics and more— to help accelerate these developments. It really is one of the most interesting and exciting new frontiers for music.”