Universal Music Group (UMG) Publishing's removal of its expansive catalog of music on TikTok has significantly put a dent in the social media platform in the past few months.
Since then, songs from BTS, Lady Gaga, Beyonce, Nicki Minaj, and even Taylor Swift have been taken down by social media platforms.
Now, the two companies have reportedly resumed talking again in hopes to strike a new deal. However, a bigger problem looms in hindsight.
TikTok, UMG In Talks Again to Revitalize Music Publishing Deal?
According to sources close to Billboard, TikTok (ByteDance) and UMG have been talking again after the two companies' relationship has been strained in the past months.
Insiders reveal that the UMG and Billboard have returned to the bargaining table. However, as of this writing, it is still unclear if the talks have resulted in any progress, as both entities have refused to comment.
UMG has since slammed TikTok after failing to reach a new and equitable deal with the company.
In February 2024, UMG published an open letter titled, "An Open Letter to the Artist And Songwriter Community - Why We Must Call Time Out On TikTok," pressing out three significant points why they are sticking to the nuclear option of pulling out their entire catalog from TikTok.
"In our contract renewal discussions, we have been pressing them on three critical issues," they said in a statement, which includes protection from AI-generated recordings, online safety issues for users, and higher compensation for its artists and songwriters.
The glaring problem that the company has pointed out is that in the new contract, TikTok doesn't want to increase their rate of paying the artists for the songs licensed despite "its massive and growing user base, rapidly rising advertising revenue and increasing reliance on music-based content."
However, TikTok responded, saying that UMG has "put their own greed above the interests of their artists and songwriters," even describing their statement as a "false narrative and rhetoric."
READ ALSO: Mike Pence Urges TikTok Ban With $2 Million Ad Campaign
US Congressional Probe Dooms TikTok Future
Very recently, the US Congress fast-tracked the signing of the TikTok Natural Security Bill by packaging it along with crucial foreign aid packages for Taiwan, Israel, and Ukraine. (via Financial Times)
If the bill gets enough signatures in the House on Apr. 20, 2024, it would then compel the Senate to act against TikTok and sign the.
Once approved by both chambers of Congress, President Joe Biden's signature would force ByteDance's Chinese owner to do two things - either divest and sell the platform to a country that the United States does not consider a foreign adversary, or they would face dire consequences. Should they choose not to, Congress could ban the application used by more than 170 million Americans from being downloaded or used in the United States.
READ ALSO: Universal Music Group Prepares to Bring Legal Action Against TikTok
