TikTok's Licensing Predicament: Expiring Music Publishers Deal Amplifies Universal Music Group Dispute
Portfolio Pulse from Franca Quarneti
TikTok is in a licensing dispute with Universal Music Group NV (UMGNF) and is nearing the end of its deal with the National Music Publishers Association (NMPA), leading to the removal of music co-written by UMGNF songwriters. The NMPA advises members to negotiate directly with TikTok or explore enforcement options. TikTok's parent, ByteDance, reported Q3 2023 revenues of $30.9 billion, close to Meta Platforms Inc's (META) $34 billion. The dispute could escalate if other publishers like Sony Group Corp. (SONY) and Warner Bros. Discovery Inc's (WBD) Warner Chappell join, affecting more music on the platform.
March 07, 2024 | 8:37 pm
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NEUTRAL IMPACT
Meta Platforms Inc's Q3 2023 revenues are reported at $34 billion, closely followed by ByteDance's $30.9 billion, indicating competitive pressure.
While the news directly pertains to TikTok and its parent ByteDance, the mention of META's revenues in comparison provides context but does not directly impact META's short-term stock performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Sony Group Corp. could potentially join the licensing dispute with TikTok, affecting the availability of its music on the platform.
If SONY joins the dispute alongside UMGNF, it could lead to a negative impact on the availability of its music on TikTok, potentially affecting its exposure and revenue from the platform.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Universal Music Group NV is in a licensing dispute with TikTok, leading to the removal of music co-written by its songwriters from the platform.
The dispute with TikTok could lead to a negative impact on UMGNF's exposure and potentially its revenue from the platform, as music plays a crucial role in social media engagement.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Warner Bros. Discovery Inc's Warner Chappell could join the licensing dispute with TikTok, impacting the availability of its music on the platform.
Joining the dispute could negatively affect WBD's Warner Chappell's music availability on TikTok, potentially impacting exposure and revenue from the platform.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70