Joe Bonamassa recently took to X to voice his support for Universal Music Group’s decision to end its licensing agreement with TikTok over fair compensation issues, urging other platforms to follow suit.
Universal Music Group (UMG) recently announced that it could not reach an agreement with TikTok on new deal terms. This dispute, particularly over artist compensation and the use of AI, led to UMG’s decision to stop licensing its content to the popular social media app.
Bonamassa’s Critique Of TikTok’s Business Model
The existing agreement between UMG and TikTok was set to expire on January 31, and with no new terms agreed upon, UMG, including Universal Music Publishing Group, will cease providing content to TikTok and its music services. Responding to this news, Bonamassa wrote:
“‘Ultimately TikTok is trying to build a music-based business, without paying fair value for the music.’ Now, do Spotify and Apple. Fair value in terms of compensation for songwriters and artists is so far in the rear view mirror that Napster seems like just glitch in the matrix.”
TikTok’s Response To UMG’s Allegations
As a response, TikTok issued a statement accusing UMG of prioritizing greed over the interests of artists and songwriters, stating:
“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.”
Despite TikTok’s influence in the music industry, UMG disclosed that the platform accounts for only about 1% of its total revenue. TikTok’s role in the music industry has been significant over the past five years. The platform has emerged as a powerful tool for music marketing, helping to launch the careers of new artists, turn viral songs into hits, and revive older catalog tracks in the music charts.
See the musician’s tweet below.
"Ultimately TikTok is trying to build a music-based business, without paying fair value for the music." Now do Spotify and Apple. Fair value in terms of compensation for songwriters and artists is so far in the rear view mirror that Napster seems like just glitch in the matrix. https://t.co/Zj6nhLehar
— Joe Bonamassa (Official) (@JBONAMASSA) January 31, 2024
