TikTok Case Study

TikTok, a social media platform featuring short clips that may include music, has seen an explosion in AI-generated music recently. However, this has been met with varying degrees of pushback and support from artists and music labels. Last February, Universal Music Group took the drastic decision in banning TikTok from using their artists’ music (Milmo). Any prior made video using their artists’ music was subsequently muted. UMG, among other large music labels, was primarily concerned in how TikTok’s increase in AI-generated music would impact UMG’s artists. TikTok has an incentive to increase the amount of AI-generated music to reduce the licensing fees and royalty they would otherwise need to give UMG’s artists (Aswad). As such, UMG’s ban primarily served as a public statement against the use of AI in music, and the need to protect artists’ rights and royalties.

Very recently, as of May 1st, Universal Music Group and TikTok have reached a deal. UMG has allowed their artists’ music to return to the platform, under the promise that TikTok will deliver improved support and remuneration to the artists, finding new potentials for promotional and engagement and monetization opportunities (Aswad).

This case study demonstrates the framework of regulation and power at large. This is a clear example of big entities trying to set the rules of the game, influencing how technology is used and governed in the creative sector. As such, their choices influence the rules and norms of the music industry, in turn shaping the treatment of the workers within, and how productivity manifests (Acemoglu & Johnson). The decisions made by platforms and labels not only affect how music is created and consumed but also who benefits from it in the digital ecosystem. The power dynamics between creators, corporations, and technology are being redefined, often leaving artists and smaller producers grappling for a fair share.

This scenario illuminates the need for thoughtful regulation and a balance of power, and perhaps a new understanding of copyright and what creativity and ownership really mean, as AI continues to integrate into the music industry.

Works Cited:

Aswad, Jem. “Tiktok and Universal Music Group Settle Royalty Dispute with New Licensing Agreement.” Variety, Variety, 1 May 2024, variety.com/2024/music/news/tiktok-universal-music-group-settle-royalty-dispute-licensing-agreement-1235987271/?sub_action=logged_in.

Milmo, Dan. “Universal Signs Tiktok Deal Allowing Artists Back on Platform.” The Guardian, Guardian News and Media, 2 May 2024, www.theguardian.com/music/article/2024/may/02/universal-signs-tiktok-deal-allowing-artists-back-on-platform.