Why Universal is calling time out on TikTok
If you log on to TikTok, you might find some silent videos and a caption that says, “This sound isn’t available.” That’s because the platform’s license with Universal Music Group has expired and TikTok has been forced to remove music that belongs to the record company, whose artists include Bad Bunny, Olivia Rodrigo and Taylor Swift.
TikTok is huge for music discovery. And rediscovery.
“Someone goes to TikTok, there’s a clip of music in the background. For instance, some guy on a skateboard singing ‘Dreams’ by Fleetwood Mac,” said George Howard, a professor of music business management at the Berklee College of Music. “And they hear it and they go, ‘Wow that’s a cool song! What is it?'”
Howard was talking about the viral TikTok from 2020 in which user @420doggface208 skateboards while drinking a jug of Ocean Spray cran-raspberry juice.
Not long after, the 1977 hit “Dreams” reappeared on the Billboard Hot 100 list. That’s great promotion for Fleetwood Mac — and you’d think great promotion for the record label.
“But over time that value has to be kinda quantified, and that’s where things are breaking down,” Howard said.
Universal says TikTok accounts for just 1% of its revenue. TikTok calls itself a “free promotional and discovery vehicle” for Universal’s talent.
TikTok has a lot of power here. But so does Universal, the largest record company in the world. So this move could tempt other labels to walk away.
And Cherie Hu, a music technology analyst, said it leaves TikTok with a gaping hole. Universal is huge on the platform.
“They also account for a really good chunk of the top songs that are charting on TikTok at any given time,” she said.
It means creators now have to avoid using some of today’s most popular songs. “It would just lead to a much worse consumer and fan experience for a lot of people using the app,” Hu said.
Especially on a platform that started as a place to make and share catchy dances.
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