UMG accuses TikTok of undervaluing music and replacing artists with AI
- Universal Music Group will pull its songs from TikTok after failing to agree to new licensing terms
- TikTok is trying to build a music-based business without paying fair value for the music
- UMG has been unable to reach an agreement with TikTok over compensation for artists, protecting human artists from AI, and online safety
- TikTok proposed paying UMG artists and songwriters at a fraction of the rate that other major social platforms pay
- UMG accuses TikTok of allowing the platform to be flooded with AI-generated recordings, replacing human artists
- Other UMG artists include Taylor Swift, Bad Bunny, Drake, Ariana Grande, Billie Eilish, and more
Universal Music Group (UMG) has issued a warning that it will remove its songs from TikTok after failing to reach a new licensing agreement. UMG represents popular artists such as Taylor Swift, Bad Bunny, and Drake. The company claims that TikTok is attempting to build a music-based business without paying fair value for the music. UMG has been unable to come to an agreement with TikTok on three key issues: compensation for artists, protecting human artists from the harmful effects of AI, and ensuring the online safety of TikTok’s users. TikTok proposed paying UMG artists and songwriters at a significantly lower rate compared to other major social platforms. UMG also accuses TikTok of flooding the platform with AI-generated recordings, effectively replacing human artists. Other notable UMG artists include Ariana Grande, Billie Eilish, Kendrick Lamar, and more.
Public Companies: Universal Music Group (UMG)
Private Companies: undefined, undefined
Key People:
Factuality Level: 7
Justification: The article provides information about Universal Music Group warning to pull its songs from TikTok due to failed licensing terms. It includes statements from UMG and an open letter to artists and songwriters. However, the article lacks specific details about the licensing terms and does not provide a response from TikTok.
Noise Level: 3
Justification: The article provides relevant information about Universal Music Group’s decision to pull its songs from TikTok due to failed licensing terms. It includes statements from UMG and highlights the key issues they have with TikTok. However, the article contains some filler content, such as the mention of Taylor Swift and other UMG artists, which is not directly related to the main topic.
Financial Relevance: Yes
Financial Markets Impacted: Universal Music Group (UMG)
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses Universal Music Group’s decision to pull its songs from TikTok due to failed licensing terms. This decision could impact the financial markets and UMG’s business.
www.marketwatch.com 
