ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

TikTok Faces Music as NMPA Signals Non-Renewal of Licensing Deal

This follows Universal Music Group's move of removing its musical works off the platform.
PUBLISHED MAR 8, 2024
Photo illustration of the TikTok app is displayed | Getty Images | Photo Illustration by Drew Angerer
Photo illustration of the TikTok app is displayed | Getty Images | Photo Illustration by Drew Angerer

The standoff between music publishers and Chinese short-form video app TikTok has taken a crucial turn. On Wednesday, the trade group National Music Publishers Association (NMPA) cautioned its member publishers that it does not expect to renew its license with TikTok which is set to expire on April 30, Billboard reported. Earlier, the world’s largest music company, Universal Music Group started removing its music from the platform. Now, with NMPA pulling out, TikTok may lose a lot more music troubling thousands of creators who depend on the platform for their income.

“Recently, the press has highlighted concerns around TikTok’s licensing practices, concerns that NMPA has heard directly from many of our members,” the letter from NMPA read, as per the Billboard report. Thus, the NMPA wrote that it does not anticipate that there will be an option to renew or extend the current licenses or extend a new license with TikTok.



 

The NMPA also mentioned that the publishers who wish to continue to license their works to TikTok may engage directly with the platform to negotiate a license. However, without an NMPA license, TikTok should not be able to use the member publisher’s musical works.

The most prominent music publishers in the world are members of the NMPA. The NMPA negotiates its TikTok license for its members, allowing them to bypass the strain and cost of negotiating directly with the platform. However, not all members of the NMPA use its model license for TikTok and negotiate their deals on their own. Thus, if the agreement doesn’t go forward, a lot of music may be removed but there will still be works of several artists available.

On the other hand, if publishers like Sony and Warner Chappell join the suit and remove their content, it means almost all famous musical works will vanish from the platform.

The battle between TikTok and the UMG has already hurt the platform. Songs published by UMG began to be removed from the platform last month and more and more publishers have removed their songs.

In January, UMG chairman-CEO Lucian Grainge wrote an open letter in which he mentioned that in its license negotiations, the UMG had been pressing on three critical issues including, appropriate compensation for artists, protection of artists from AI, and online safety of uses.



 

The letter also said that TikTok had proposed to pay artists at a rate that is a fraction of the rate that other similar platforms pay. He added that TikTok added to about 1% of the UMG’s total revenue thus, it is understandable why the company wants to change the license terms.

At last, if circumstances change before the expiration of NMPA’s current license contract with TikTok, the NMPA has said it will promptly notify its members.

While the future of TikTok’s content hangs in limbo, people on social media have turned the news into a meme fest. As the popular X account PopCrave broke the news, people flooded it with hilarious replies and memes.

One user posted a sarcastic GIF on the situation on PopCrave’s post while others simply made fun of it.



 

Another user hilariously commented that now creators will be dacning to silence after TikTok losses all its music using a Family Guy meme. 



 

However, one user pointed out the important thing that TikTok may “die” if music is removed from the app.



 

MORE ON MARKET REALIST
If it's a mansion, then it should have parking, right? Steve Harvey thinks so too.
14 hours ago
Karla Lance, a school teacher, took home a huge haul from the 'Price is Right' because her husband is a wise man.
15 hours ago
48% of small and medium-sized businesses (SMBs) are expected to raise prices during the next six months, up from 36% the year before.
17 hours ago
Economists warn that taxpayers will be burdened with $20 million per day in interest for tariff refund delays
18 hours ago
He called AI the new front of wonderful stuff coming, while mentioning its possible benefits.
18 hours ago
Private jet flights from Muscat to Istanbul have skyrocketed to almost $93,000, double the typical price.
18 hours ago
It has to be noted that the products were distributed in Illinois and Wisconsin.
20 hours ago
“If the war lasts more than two months, then this number goes up,” a renowned economist stated.
20 hours ago
Martha Shedden believes Trump's plan was only aimed at helping wealthy Americans.
1 day ago
The president's pick for Fed Chair has repeatedly said AI productivity gains will allow rate cuts.
1 day ago
A police investigation confirmed the fraud and the accused has been sentenced to prison.
1 day ago
This is not the case in all states but it certainly holds true in most cases.
1 day ago
Madogiwa-zoku or the Window tribe are a set of elderly employees retained in a company with a menial desk job without being rendered obsolete
1 day ago
The Social Security fund is running low and could be insolvent in six years.
1 day ago
A new report shows 182,000 residents exited the high-tax state of Massachusetts in the past 5 years.
2 days ago
AI adoption is accelerating, but hidden risks could cost companies dearly.
2 days ago
The job growth was mostly driven by the healthcare and social assistance sector.
2 days ago
Pressure from the government and consumers choices have forced this decision.
4 days ago
She took her time to secure the big prize, drawing a loud cheer from the audience.
4 days ago