Universal’s music returns to TikTok, ending a feud that has hurt fans more than anyone

A longstanding feud between TikTok and Universal Music Group appears to have finally come to an end, with both parties signing a deal that will see Universal-backed music return to the social media platform.

Universal first removed its artists’ work from TikTok about three months ago, limiting access to songs from household names like Billie Eilish, Adele, Harry Styles, Drake, Kendrick Lamar, Kanye West and Post Malone.

Taylor Swift was initially part of this group, but reinstated her offer prior to the release of The Tortured Poets Department. Unlike most artists signed to Universal, Swift signed a unique deal that allows her to choose where her music is played.

While the dust may have finally settled, Universal’s music drought left millions of TikTok users with a less-than-optimal experience for months — and may have created an unnecessary barrier for Universal’s smaller artists.

The events have also shed light on how interdependent the music and social media industries are, and how important compromises will be in the future.

The beef (and resolution) explained

The previous deal that gave TikTok users access to Universal’s catalog lasted until January 31 and was worth A$170 million per year to Universal (about 1% of annual revenue).

Talks to reach a new deal reportedly turned hostile, leading to Universal pulling the plug.

In an open letter published on January 30 “to the artist and songwriter community,” Universal said it was concerned about issues including “appropriate compensation” for artists and songwriters, as well as the protection of artists from the harmful effects of AI.

Universal claimed:

As our negotiations continued, TikTok tried to bully us into accepting a deal that was worth less than the previous deal, far less than fair market value and that did not reflect their exponential growth.

Universal knows its music is an important part of TikTok users’ experience. The company likely wanted a deal that reflected its market dominance, such as one tied to use cases and a cut of advertising revenue, rather than a lump sum.

TikTok offered its own framework on the issue:

Despite Universal’s false narrative and rhetoric, the fact is that they have chosen to walk away from the strong support of a platform with well over a billion users that serves as a free promotional and discovery tool for their talent.

In a recent statement, the companies said the new deal would provide better pay terms for Universal’s artists, but they stopped short of publicly providing financial terms or dollar amounts. TikTok also said it would commit to removing unauthorized music generated by artificial intelligence, a growing concern for the music industry.

Universal artists’ music is expected to return to the platform within one to two weeks, with muted videos getting their audio back.

Universal’s upper hand

Unsurprisingly, Universal came out of the negotiations with a better deal than before. TikTok is known for its dance and music-related content and likely couldn’t afford to continue without access to Universal’s catalog.

In early 2023, TikTok ran a ‘trial period’ restricting some users’ access to music from major labels in Australia. The result was a decrease in both the number of users and activity.

Past statements also suggested that the deck would be weighted in Universal’s favor. For example, a ruling in Germany found that TikTok was liable under European Union regulations for unlicensed content that appeared on its platform.

A continued boycott of Universal could have been a nightmare for TikTok, as Universal is the largest of the three major music publishers (alongside Warner and Sony). It also owns a plethora of relatively smaller or ‘independent’ labels, including Capitol, Def Jam, EMI, Island, Polydor and Virgin.

A codependent relationship

At the same time, it’s naive to suggest that the only benefit Universal gets from TikTok using its music is the revenue TikTok pays. This would ignore the enormous influence that TikTok also has on the music industry.

One TikTok trend this year is inspired by a scene from the Oscar-nominated film Saltburn, in which the main character dances to Sophie Ellis-Bextor’s 2001 hit Murder on the Dancefloor. Thanks to TikTok, a song you only heard at your partner’s wedding temporarily became the epicenter of youth culture.

This is just one example of how TikTok can be mutually beneficial. Not to mention how many Universal artists often use TikTok to connect with their fans.

Universal and TikTok win, so who lost?

Even if no deal were reached, it would be difficult to see Universal (which earned A$17.5 billion in 2022) or TikTok (which earned A$14.5 billion) as “victims” or “losers.”

It’s also fair to say that Universal’s roughly three-month boycott didn’t hurt any of the lead artists. It was probably the smaller artists, who see next to nothing of the money TikTok pays Universal, that would have suffered the most. In addition, it was TikTok users who paid the price.

A Rolling Stone article noted the case of Cody Fry, whose song Things You Said went viral on Douyin (mainland China’s TikTok wing). But just as he planned to capitalize on the fame, his music was withdrawn.

The same events, in different contexts, produce different stories. Legacy artists like Taylor Swift are being “exploited” by TikTok, while emerging artists are being “promoted.”

Both companies have their own business (and money) in such disputes, while the little guys are left behind. But the fact that Billboard is now publishing a TikTok top 50 chart is proof that these two industries need each other.

If they care about listeners and up-and-coming talent, they both need to bend a little to avoid another drought.