Universal’s concerns reflect urgent music business challenges artists’ need to make a decent living, modern licensing contracts, and the role of artificial intelligence. Music companies are adjusting to the reality that music fans’ attention is not solely on streaming outlets like Spotify or Apple Music, but also on social platforms like TikTok. TikTok’s issue involves how much leverage it is willing to relinquish to any single content partner. Music is important on TikTok, but it does not represent the entirety of the app’s experience. This may affect Universal, which is pursuing a better deal for its acts, and could hurt artists in the short term. TikTok is a vital promotional outlet, and many artists rely on the app to discover new music. However, artists also want better deals for their music and do not want to sacrifice promotion or their connection to fans. Universal’s roster of stars gives it leverage, and losing access to a library of popular songs is not good for TikTok. Apps with a music component rely on their licensing arrangements with entertainment companies, and users expect to have a broad selection.
