In recent events, Universal Music Group (UMG), the powerhouse behind renowned artists like Harry Styles, Adele, and Coldplay, has found itself at the center of a licensing disagreement with popular social media platform TikTok. This dispute has muted millions of songs on the platform and raised critical questions about fair compensation for artists and the impact of artificial intelligence (AI) on the music industry.
The breakdown in negotiations between UMG and TikTok has resulted in the removal of UMG-owned music from the platform, extending its reach to the label’s publishing catalog. This unfortunate development has caused a decline in exposure and financial gains for many artists, emphasizing the vulnerability of musicians relying heavily on major record labels for visibility and revenue.
As UMG artists face the repercussions of the expired licensing agreement, the incident highlights the advantages of being an independent artist. Independent musicians can retain full creative control ownership of their music and keep all profits—an appealing prospect as major labels grapple with negotiating fair terms with platforms like TikTok. Channel 4’s UNTOLD recently featured Krept & Konan, underscoring the significance of independent ownership: “It is so important to us to have 100% ownership of our music; this is how it should be done.”
AI’s role in the music industry and licensing woes
The emergence of AI in the music industry poses challenges to existing legal frameworks and raises concerns about ownership and copyright protection. The licensing dispute with TikTok brought attention to the potentially harmful effects of AI on human artists, yet UMG paradoxically signed the first AI artist, FN Meca, in 2022. This controversial move signaled a shift in the industry, with AI being seen as a tool to accelerate music production rather than a complete replacement.
While AI-generated songs may threaten human artists and producers, the trajectory suggests a collaborative relationship between AI and human creativity rather than outright redundancy. As the industry navigates these uncharted waters, how artists and record labels will adapt to the evolving landscape remains to be seen.
As artists contemplate their career paths, the shifting dynamics from traditional record label aspirations to independent routes are becoming more pronounced. However, without measures to create a more equitable environment and ensure exposure for independent artists, this shift may not fully materialize. The recent licensing dispute serves as a reminder that evolving legislation is essential to protect artists’ rights in the ever-changing music industry.
Beyond the realm of music, the Royal assent of The Online Safety Act 2023 is poised to bring social media platforms, including TikTok, under increased scrutiny and regulation. Stricter guidelines aim to enhance online safety, indicating a significant transformation in social media’s operations.
The licensing dispute between UMG and TikTok sheds light on the challenges artists face in an era dominated by streaming platforms and technological advancements. The incident underscores the need for transparent licensing agreements that ensure fair compensation for artists, especially in the face of AI’s growing influence. As the music industry navigates these challenges, artists, record labels, and platforms must collaborate to create an environment that fosters creativity, innovation, and fair compensation for all stakeholders.
