A licensing agreement between TikTok and Universal Music Group has ended a feud between the two companies, allowing for music by UMG artists to be used on the video platform once again. This includes artists such as Ariana Grande, Adele, and Rihanna, in addition to Taylor Swift, whose music had returned to TikTok prior to this deal. The agreement will benefit UMG artists and songwriters by providing improved remuneration through various commercial and marketing opportunities offered by TikTok, such as integrated ticketing capabilities and e-commerce features. The deal is expected to significantly increase revenue for UMG from TikTok.
The new relationship between TikTok and UMG was brokered to address concerns about fair compensation for artists and songwriters. The companies have committed to working together to ensure that AI development in the music industry will protect human artistry and the economic benefits that flow to artists and songwriters. Part of this includes removing unauthorized AI-generated music from the platform and implementing tools to improve artist and songwriter attribution. UMG had previously pulled its music from TikTok in February after failing to reach an agreement on royalty fees, accusing TikTok of not paying fair value for the music and raising concerns about the impact of AI-generated recordings on artists’ royalties.
The agreement will benefit UMG’s roster of artists and songwriters, who will now have their music unmuted on TikTok, allowing users to create videos featuring their music. The deal will also enable users to add music from TikTok videos to their preferred music apps, further enhancing the user experience on the platform. UMG and TikTok have not disclosed financial details of the deal, but UBS analysts estimate that the agreement could potentially double Universal’s revenue from TikTok to €200 million, representing a significant portion of the company’s total revenue.
TikTok CEO Shou Chew expressed his pleasure in finding a path forward with UMG, highlighting the positive impact of the agreement on both parties. This development signifies a step in the right direction for the music industry, demonstrating the collaborative efforts between tech platforms and record labels to ensure fair compensation and protection for artists and songwriters. With major artists like Ariana Grande, Adele, Rihanna, and Taylor Swift back on TikTok, users can look forward to creating content with their favorite music once again, adding to the diverse and engaging content available on the platform.
The renewed partnership between TikTok and UMG brings together two major players in the music industry to work towards protecting human artistry and ensuring fair compensation for artists and songwriters. As part of the agreement, TikTok will remove unauthorized AI-generated music from the platform and implement tools to enhance artist and songwriter attribution, reaffirming their commitment to supporting the creative community. The deal is a positive development for UMG, potentially doubling their revenue from TikTok and creating new opportunities for artists to reach a wider audience through the platform’s integrated features.
In conclusion, the agreement between TikTok and UMG marks a significant milestone in resolving the feud between the two companies and reinstating music from UMG artists on the platform. The deal benefits artists and songwriters by providing improved remuneration and protection against unauthorized use of their work. With major artists like Ariana Grande, Adele, and Rihanna back on TikTok, users can enjoy creating content with their music once again, enhancing the overall user experience on the platform. The partnership demonstrates a collaborative effort towards supporting the music industry and ensuring fair compensation for artists and songwriters in the digital age.
