After months of disagreements, Universal Music Group (UMG) and TikTok have finally resolved their feud. UMG, which owns the world’s largest music catalog with over 4 million songs, had clashed with TikTok over how the platform treats its artists.
In late January, UMG publicly criticized TikTok for its handling of artists’ content. This led to millions of videos being muted on the platform. Despite UMG’s best interest, this did not go over well among creators and the music industry. TikTok is a leading platform that many artists use to promote their work.
As part of their agreement, UMG and TikTok are now focusing on protecting artists from AI-generated music. TikTok has committed to improving songwriter attribution and removing unauthorized AI-generated music from the platform. Both companies aim to protect human artistry and ensure that artists and songwriters receive fair compensation.
The previously muted tracks have since returned to TikTok, restoring some harmony in the music industry.
Until the NMPA stepped in and took over.
Recently, the National Music Publishers Association (NMPA) urged Congress to update old licensing laws to better fit modern needs. The NMPA represents major music publishers including UMG.
NMPA CEO David Israelite stated
Large, foreign-owned companies, like Spotify, should not enjoy unfair advantages over American songwriters because of outdated federal policy
Tensions between the NMPA and Spotify have been growing, particularly because Spotify introduced changes to their subscription plans. This change now includes music and audiobooks in their plan. Sounds great, but this change led to lower royalty rates for songwriters.
The Digital Media Association, which includes Spotify, criticized the NMPA’s proposal, saying it would take apart the Music Modernization Act (MMA). The MMA, passed in 2018, sets the rules for mechanical royalties for artists and songwriters. Israelite’s letter suggested allowing publishers to opt out of the license, creating a free market instead.
While the dispute between publishers and Spotify isn’t new, things have been quiet since 2022. However, Spotify’s recent subscription changes reignited the conflict. The Copyright Royalty Board (CRB), which sets royalty rates allows this to occur.
CRB allows streaming platforms to call for lower rates when music is bundled with other services. Billboard reported that Spotify’s new bundle could mean $150 million less in payouts to writers and publishers this year alone.
To add to the tension, The Mechanical Licensing Collective sued Spotify for the changes that are hurting artists and songwriters. Spotify responded by stating they paid a record amount to publishers and societies in 2013 and expect to pay even more in 2024.